PWYW Pricing for Creative Businesses
Pay What You Want (PWYW) is a pricing strategy where buyers pay any desired amount for a given commodity, sometimes including zero. A minimum price may be set and/or a suggested price offered as guidance for the buyer. The buyer can also select an amount higher than the standard price.
Pay What You Want pricing schemes are becoming more popular amongst all sorts of businesses - not just creative ones - from bakeries to software companies. Google the term and you will find various economy and entrepreneur sites around the blogosphere with features on PWYW, mostly with positive reviews.
I’m not suggesting that as artists we start pricing all our creative work according to this model but there are certainly lots of areas where it might prove beneficial.
PWYW Online Courses or Tutorials with PayPal
The most obvious market for the PWYW model that would work for creatives, is online courses or tutorials. Any type of educational material you offer that doesn’t require your personal interaction could work under this model. Although the unit sale price might be lower, you might just reach a lot more people.
If you are already using PayPal to receive payments, it’s not difficult to configure a button that let buyers choose between different price options.
Of course, even if you offer a basic product for free, there is always the option of and upgraded version which you pay more for. (Randy offers
iPad-retina sized files of the final painting and drawing done in the video for personal use to anyone who pays the recommended, price of $19.99 or more.)
Skills Exchange and Discounts for Social Media Sharing
In the third part of this series, I will be looking at further ways to explore alternative economic systems in our Art-Biz lives including skills exchange and discounts for social media sharing.
Listen to: This interview with The Bookwright Tom Evans about putting his Time Management Course on Sacred Om
Check out: Etsy artist Shannon Ganshorn’s implementation of the PWYW idea and, of course, Randy Gallegos' implementation of the PWYW idea.
Comment: Have you bought or sold a product under a PWYW scheme? What do you think of the experience? Would you do it again?