Recently it was announced that WhatsApp would start charging a fee for new users who wanted to download and use its services. It has always been a struggle for free apps to suddenly start charging. Would their users value their service enough to want to pay for it now? Would a competitor come along offering the same service for free and reduce them to redundancy? These and many more questions are definitely on the minds of the guys at WhatsApp for sure. But I’m not here to talk about whether or not they will be successful in turning their free app into a huge profit making venture. What I’m going to talk about today is LINE.
Interestingly I only found out about Line two days ago while out running with a friend and co-founder of Intraix. They have recently expanded successfully into Japan through a Japanese partner and whether by choice or necessity, have had to download Line!
So what exactly IS Line? In a nutshell, it’s WhatsApp with uber cute emoticons! Think cute anime bear waving at you when you want to say ‘bye’. I think that is sufficient to spur your imagination!
The interesting thing is that users have to PAY to download a pack of ‘stickers’. Last i heard it’s about $12-$15 for a pack of stickers. Not bad value for money I must admit!
It’s doing really well in Japan, Taiwan and even China and if you’re a startup doing well in these three countries, I think you’d be able to sleep very comfortably at night.
Imagine if WhatsApp had thought up of this business model from the start! They wouldn’t even have to worry about charging a fee to download their app anymore.
I think there are a few key lessons we can learn here:
1) It’s not wrong to want to build up your user base by giving out free apps for download. But always make sure you can create a demand for something you can add on as a value add that your users will be more than willing to pay for.
2) Never underestimate Asians’ willingness to pay for something cute and adorable (just for jokes guys no Asian hatin’ here!)
(Have something to add on? Just leave a comment and I’ll be happy to read it! Thanks!)
StartupCHEW 