Are DNN Modules Underpriced?
Much of the DNN community culture springs from the open source “free” nature of the platform itself. As an outsider stepping into the DNN world, I was amazed at the low module pricing threshold accepted within the community. Today, the majority of the highest rated and most popular products only sell in the range of $30-$100!
I once saw a customer complaining about lack of technical support for a $49.95 module. He was complaining in the module developer’s own support forum. This guy was really angry at having paid “all this money” for the module without getting immediate forum or email support responses!
I’m afraid this attitude pervades much of the DNN community. The reality of appropriate pricing levels, however, is based on the perceptions of both the selling and buying communities.
Take a look at Community Server (CS) from Telligent. CS is a polished community creation platform based on .NET. It features built-in, fully integrated blogs, forums, photo galleries, and more. CS Professional costs $2,000, but has some limitations that would drive more successful communities to CS Enterprise for around $20,000. Like DNN, a community of developers and consultants has grown up around CS. But, that’s where the similarity ends. Culturally, most contract CS developers won’t even talk to you about projects for under $20,000. Who the heck are these guys selling to, then?
They are selling to larger, corporate entities. But, how can CS possibly be successful when a similar DNN solution can be had for a fraction of the cost? (In fact, once the social networking features in Cambrian show up, I think DNN will be a far superior solution.) You might think that corporate customers are mostly focused on price when selecting enterprise products and services … and you’d be right ... to a point.
However, most companies also have a fundamental need for safety. Consider, for example, a company looking at solutions in the range of $20,000 - $40,000. More often than not, the business will go to a solution near the $20,000 end of that scale (all other factors being reasonably equal). Now, let’s say a $500 solution enters the fray. The big company usually won’t seriously consider this cheap player. It fears the company behind that solution is too small, won’t be around in the future to provide support, and probably has hidden technical deficiencies that all explain this outrageous pricing disparity. The old adage “nobody ever got fire for buying IBM” still holds true in corporate America, though there are a host of “safe” brands out there today.
So, I see three main problems with DNN’s culture of cheap.
- Module developers don’t generate enough revenue to grow beyond a single programmer working from his basement. Since the purchase price is low on the scale of ice-cream cone to car, the developer doesn’t always feel compelled to produce a bug free, full-featured, stylistic product.
- Module buyers aren’t spending much for these products (again on the scale of ice-cream cone to car) and therefore aren’t always compelled to push these modules to their functional and stylistic limits. “I only paid $30 for it. That’s not perfect, but good enough.” I believe this is another reason why many DNN websites look ugly. (See my previous post on this subject.)
- DNN consultants looking to win business with corporate clients may project their inherent “cheapness” thinking it will set them apart from more expensive, established options. I would suggest that you never tell such a client that Active Forums, for instance, only costs $200. If you lead with price and are competing with established firms that are all an order of magnitude higher than your quote, you will often be seen as the risky option.
I believe that DNN should be a seriously considered option for corporate websites. Does the community need to rise above its open source mentality to make real progress on that front?
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