Never say never....

Promises to customers can become expensive if you promise something that lasts forever. I see lots of companies saying they’ll never charge for a particular thing, or that something will always be free. That sounds reassuring to the customer now, but what do you do if the world changes?

That’s the thought I’m discussing here in July 2010. The world is constantly changing. You change, customers change, and the way an industry makes money can shift too. That’s why I think you need to think very carefully before using the words "never" and "always".

Promises of free updates for life

I know the software industry through SPAMfighter, among other things. I’ve seen lots of companies say: Buy our product, and you’ll get free updates for the rest of your life. We’ll never charge you for anything afterwards.

But at this point, I see the industry moving from selling a piece of software once to selling an ongoing service. Instead of, say, $49 for the product, you might charge $29 a year to use it.

Then the company that promised free updates forever can suddenly have a problem. What if the product becomes less popular and new customers stop coming in?

Imagine there are still 1,000 customers who really like the program. But the income dries up while the company has promised to keep updating it without charging any more.

A promise can force you into a bad solution

Then you’re left with some unpleasant options. You can go back on your word and start charging. That costs credibility. In the video, I also mention my concern that a promise could, in principle, lead to a case against the company. That’s my thinking about the consequences, not a review of the law.

Or you can shut the program down. Then the 1,000 customers are upset, and you also lose a possible source of income.

Perhaps some of them would have stayed if the product cost $29 a year. There might only be 700 or 800 left, but their payments could be enough for you to maintain the program and still make a profit.

That’s a hypothetical example. My point is that a very big promise can get in the way of a solution that both customers and the company could otherwise benefit from.

My vision for Amino isn’t a guarantee for eternity

That’s also why I don’t go out and promise Amino will always be free for every user. If anyone can find me saying that, I joke that I must have been very drunk or under the influence of something.

My vision is absolutely for the Amino discussion forum to be free for entrepreneurs. There’s no doubt about that. But I don’t know how the world will develop in the future.

Let’s take a deliberately silly example: What if a tax or something else pushes bandwidth prices up so it suddenly costs me one krone to serve each user every day? Then it might no longer be possible to run Amino for free.

If I’d promised free access forever, I’d either have to say it now costs money after all, disappointing people, or consider closing it. There might be other solutions too, but it’s still an annoying situation to have put yourself in.

Reassure customers without promising too much

I think you should communicate in a way that makes customers feel secure and happy. But that doesn’t mean promising something for all eternity.

Think about what you can actually stand behind. A "never" or "always" can come back and bite you in the arse if circumstances change. Then you’re left thinking: Why the hell didn’t I keep my mouth shut back then? You’ll find more of my experiences of running businesses in Iværksætter til jeg dør.

That’s what I mean by never saying never. And think before you say always too.

Hear why the word "never" could become the most expensive word you’ve ever used… Best wishes, Martin