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This approach can work for many applications where you encounter some price resistance. It s a way to get your product into the hands of the user. And it makes it easier for them to pay for it. They can pay in two smaller chunks instead of one large one. The key is to find some restriction that will not interfere with your customer receiving the full benefit of the product. In the case of E-Z-MRP cited earlier, other than that one restriction on the capacity of the Part Master table, the restricted and unrestricted versions are identical. A variation on this model is to restrict some of the functionality of the product. Again, you have to find functions that users who are just starting to use your product will not miss, but will require as they grow the business or grow into the product. This is a little trickier because it can easily evolve into paying by the module or function. Keep it simple. One restricted version and one unrestricted version makes the decision easier for your prospect.

I basically emulated the whole thing on a Palm Pilot so my friends were able to throw out their stupid devices and use my thing..

Joe Kraus started Excite (originally called Architext) in 1993 with five Stanford classmates. Though they began by developing technology for information search and retrieval, their decision to go into web search ultimately made their site the fourth most popular site on the Web in the late 1990s. Excite got venture capital funding in 1994 and launched its web search engine into a market crowded with competitors. Excite went public in 1996 and in 1999 merged with high-speed Internet service @Home.com to become Excite@Home. In 2004, Kraus and Graham Spencer founded JotSpot, an application wiki company.

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Livingston: How did Excite get started Kraus: We decided to start a company together before we had any idea what we were going to work on. But we were so committed to the idea of starting something together that we knew we were going to figure it out. For me, that idea came from a formative experience after freshman year of college. As soon as I had arrived home to Los Angeles from Stanford, my parents said, Good news and that usually meant something bad We went to your high school fundraiser last night and we bought you a summer job. And I thought, Oh, that s terrible news. I had thought I would pump yogurt or bag groceries and then I could surf and hang out with friends, which was really what I wanted to do. I said, Well, where is this job and what is it They said it was at an architectural engineering firm. I thought, Well, that sounds kind of interesting. I don t know what that is, but OK. So I show up for work on my first day and the job is to duplicate microfiche with three 70-year-old women. For a 19-year-old guy, this is hell. You had to expose the microfiche to ultraviolet light and then run it through this developer, which had this ammonia smell. It was really bad. I did that for 3 weeks and I quit and bagged groceries. I kind of determined from that point

A quadtree is a simplified version of an octree. A quad needs to be divided only into four smaller quads, while an octree node needs to be divided into eight child cubes. An octree also needs to keep track of the position of all objects inside it, while a quadtree doesn t have to deal with this.

Of course, I don t advocate that you give your product away for free That business model was pretty thoroughly discredited by the dot-com bust of 2000 However, there is a whole audience out there in academia that you can expose your product to by providing a highly restricted version one that s functional but only useful in a classroom setting This works, of course, only if your product addresses a subject or discipline that is taught on the college level For example, the subject of manufacturing systems is widely taught in business schools For them I created a version of E-Z-MRP in which the capacity of the Part Master table is restricted to 35 parts Other than that one restriction, the full and educational version are the same This allows enough parts to create a small product but not enough to be useful in a real production environment.

forward that my life wasn t going to be about being in an office, working with people I didn t want to work with and doing jobs I didn t want to do The next summer, to avoid the risk of my parents buying me another job, I contacted a high school friend who was an artist and said, Let s start a T-shirt company together over the summer How do you start a T-shirt company that runs only 3 months and then evaporates The answer is that we found a group of clients that actually buy summer wear in the summer which is very unusual because in retail, you buy your summer goods in the winter and winter goods in the summer Nobody s buying T-shirts in the summer in traditional retail But it turns out that private school bookstores have a lot of gear: T-shirts, sweatshirts, hats, etc.

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