How Much Should I Charge?

by Luke Hohmann

A business model defines how you will charge a customer for your products and/or services, but it does not define *how much* you will charge -- a pricing model does that. Transaction fees, for example, can be just a few cents to many millions of dollars, depending on the nature of the transaction! If your business model is based on access to the software, the associated pricing model could be a one-time payment based on the specific modules or features licensed (a "menu" approach), or it could be a set fee based on the annual revenue of the enterprise.