<?xml version="1.0" encoding="UTF-8"?><rss version="2.0"
	xmlns:content="http://purl.org/rss/1.0/modules/content/"
	xmlns:dc="http://purl.org/dc/elements/1.1/"
	xmlns:atom="http://www.w3.org/2005/Atom"
	xmlns:sy="http://purl.org/rss/1.0/modules/syndication/"
		>
<channel>
	<title>Comments on: There is no free lunch &#8211; Babbel goes Premium</title>
	<atom:link href="http://www.kirstenwinkler.com/there-is-no-free-lunch-babbel-goes-premium/feed/" rel="self" type="application/rss+xml" />
	<link>http://www.kirstenwinkler.com/there-is-no-free-lunch-babbel-goes-premium/</link>
	<description>Language Coach &#38; Online Education Expert</description>
	<lastBuildDate>Sun, 07 Mar 2010 02:07:17 +0100</lastBuildDate>
	<generator>http://wordpress.org/?v=2.8.6</generator>
	<sy:updatePeriod>hourly</sy:updatePeriod>
	<sy:updateFrequency>1</sy:updateFrequency>
		<item>
		<title>By: chinamike</title>
		<link>http://www.kirstenwinkler.com/there-is-no-free-lunch-babbel-goes-premium/comment-page-1/#comment-573</link>
		<dc:creator>chinamike</dc:creator>
		<pubDate>Mon, 16 Nov 2009 12:18:52 +0000</pubDate>
		<guid isPermaLink="false">http://www.kirstenwinkler.com/?p=1326#comment-573</guid>
		<description>Hilarious????&lt;br&gt;&lt;br&gt;I suppose, especially if you identify with these lily-white flag holders. I doubt that historically sensitive indigenous people, Africans, Chinese, or Arabs would consider this hilarious. &lt;br&gt;&lt;br&gt;Especially seeing as how in the recent past, European languages were used in the service of subjugating native peoples and sometimes making them feel like second-class citizens in their own countries.</description>
		<content:encoded><![CDATA[<p>Hilarious????</p>
<p>I suppose, especially if you identify with these lily-white flag holders. I doubt that historically sensitive indigenous people, Africans, Chinese, or Arabs would consider this hilarious. </p>
<p>Especially seeing as how in the recent past, European languages were used in the service of subjugating native peoples and sometimes making them feel like second-class citizens in their own countries.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: chinamike</title>
		<link>http://www.kirstenwinkler.com/there-is-no-free-lunch-babbel-goes-premium/comment-page-1/#comment-575</link>
		<dc:creator>chinamike</dc:creator>
		<pubDate>Mon, 16 Nov 2009 11:59:51 +0000</pubDate>
		<guid isPermaLink="false">http://www.kirstenwinkler.com/?p=1326#comment-575</guid>
		<description>Pricing on-line is similar to off-line pricing, the big difference being the pace a which new competitors are constantly moving into your space.&lt;br&gt;&lt;br&gt;On-line you need to price against BOTH present and unseen future competitors.&lt;br&gt;Love to hear your thoughts on pricing Jason. This issue is kicking up a lot of dust.</description>
		<content:encoded><![CDATA[<p>Pricing on-line is similar to off-line pricing, the big difference being the pace a which new competitors are constantly moving into your space.</p>
<p>On-line you need to price against BOTH present and unseen future competitors.<br />Love to hear your thoughts on pricing Jason. This issue is kicking up a lot of dust.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: chinamike</title>
		<link>http://www.kirstenwinkler.com/there-is-no-free-lunch-babbel-goes-premium/comment-page-1/#comment-574</link>
		<dc:creator>chinamike</dc:creator>
		<pubDate>Mon, 16 Nov 2009 11:55:56 +0000</pubDate>
		<guid isPermaLink="false">http://www.kirstenwinkler.com/?p=1326#comment-574</guid>
		<description>Paul if you mean yearly pricing I might agree, but in terms of monthly pricing, which Babble advertises, these differences are HUGE. &lt;br&gt;&lt;br&gt;Over the course of a year the differences between your lower and upper prices amounts to 240 Euros. That, is a pretty penny.</description>
		<content:encoded><![CDATA[<p>Paul if you mean yearly pricing I might agree, but in terms of monthly pricing, which Babble advertises, these differences are HUGE. </p>
<p>Over the course of a year the differences between your lower and upper prices amounts to 240 Euros. That, is a pretty penny.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: chinamike</title>
		<link>http://www.kirstenwinkler.com/there-is-no-free-lunch-babbel-goes-premium/comment-page-1/#comment-572</link>
		<dc:creator>chinamike</dc:creator>
		<pubDate>Mon, 16 Nov 2009 10:12:47 +0000</pubDate>
		<guid isPermaLink="false">http://www.kirstenwinkler.com/?p=1326#comment-572</guid>
		<description>Well,&lt;br&gt;&lt;br&gt;This was to be expected after taking that investment capital. It may be a risk for Babble to change business models mid-stream but it is one they are going to have to take. I think all the polite talk about the negatives of advertising obscures one fact-- that they will never be able to turn a profit if they rely on ads. Once you face this fact, it is an easy decision to get rid of ads and all the downside they involve.&lt;br&gt;&lt;br&gt;In terms of Rosetta Stone being a possible model for Babble, well,  I find myself shaking my head. The overhead at Rosetta Stone is huge, they currently have 224 Kiosks selling their products mainly in airports across the U.S. . In their latest annual report they claim that, &quot;our multi-channel marketing and distribution models are fundamental to our success. Specifically, we focus on educating customers about the many benefits of our products and services by leveraging our advertising and kiosk network in order to drive website and call center traffic&quot;. &lt;br&gt;&lt;br&gt;I doubt this is a model that Babble wants to follow. In fact I&#039;m betting that their business model is much more a mass market model aiming at nibbling away (with feature comparisons) at the underbelly of companies like Rosetta Stone and other high overhead publishers.&lt;br&gt;&lt;br&gt;A better example of a model to follow is Chinesepod which has also very recently turned its back on the freemium model. I wouldn&#039;t be surprised if Babble is following the developments at Chinesepod. In any case, I can&#039;t imagine how you go from being free to becoming a premium product in the space of 24 hours especially if you are essentially still offering the same product. Any large price increase would be met with derision and disbelief.&lt;br&gt;&lt;br&gt;My conclusion is that Babble doesn&#039;t want to become a premium priced site but does want to offer a very affordable premium product to the mass market. This move and similar moves by like-minded companies will make it increasingly difficult for premium suppliers like Rosetta Stone to continue charging premium prices in a global market.</description>
		<content:encoded><![CDATA[<p>Well,</p>
<p>This was to be expected after taking that investment capital. It may be a risk for Babble to change business models mid-stream but it is one they are going to have to take. I think all the polite talk about the negatives of advertising obscures one fact&#8211; that they will never be able to turn a profit if they rely on ads. Once you face this fact, it is an easy decision to get rid of ads and all the downside they involve.</p>
<p>In terms of Rosetta Stone being a possible model for Babble, well,  I find myself shaking my head. The overhead at Rosetta Stone is huge, they currently have 224 Kiosks selling their products mainly in airports across the U.S. . In their latest annual report they claim that, &#8220;our multi-channel marketing and distribution models are fundamental to our success. Specifically, we focus on educating customers about the many benefits of our products and services by leveraging our advertising and kiosk network in order to drive website and call center traffic&#8221;. </p>
<p>I doubt this is a model that Babble wants to follow. In fact I&#39;m betting that their business model is much more a mass market model aiming at nibbling away (with feature comparisons) at the underbelly of companies like Rosetta Stone and other high overhead publishers.</p>
<p>A better example of a model to follow is Chinesepod which has also very recently turned its back on the freemium model. I wouldn&#39;t be surprised if Babble is following the developments at Chinesepod. In any case, I can&#39;t imagine how you go from being free to becoming a premium product in the space of 24 hours especially if you are essentially still offering the same product. Any large price increase would be met with derision and disbelief.</p>
<p>My conclusion is that Babble doesn&#39;t want to become a premium priced site but does want to offer a very affordable premium product to the mass market. This move and similar moves by like-minded companies will make it increasingly difficult for premium suppliers like Rosetta Stone to continue charging premium prices in a global market.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: jasonoutthere</title>
		<link>http://www.kirstenwinkler.com/there-is-no-free-lunch-babbel-goes-premium/comment-page-1/#comment-569</link>
		<dc:creator>jasonoutthere</dc:creator>
		<pubDate>Wed, 11 Nov 2009 01:03:28 +0000</pubDate>
		<guid isPermaLink="false">http://www.kirstenwinkler.com/?p=1326#comment-569</guid>
		<description>Love the headline Kirsten. This has been a big mindbender for many people, pricing online. No point me biffing on here as finer minds have expounded, but the lunch, as any fat cat city banker will always be happy to tell you is most definitely never free (I did actually biff on about this a while ago, not that anyone noticed :-)</description>
		<content:encoded><![CDATA[<p>Love the headline Kirsten. This has been a big mindbender for many people, pricing online. No point me biffing on here as finer minds have expounded, but the lunch, as any fat cat city banker will always be happy to tell you is most definitely never free (I did actually biff on about this a while ago, not that anyone noticed <img src='http://www.kirstenwinkler.com/wp-includes/images/smilies/icon_smile.gif' alt=':-)' class='wp-smiley' /> </p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Paul Maglione</title>
		<link>http://www.kirstenwinkler.com/there-is-no-free-lunch-babbel-goes-premium/comment-page-1/#comment-567</link>
		<dc:creator>Paul Maglione</dc:creator>
		<pubDate>Tue, 10 Nov 2009 22:56:25 +0000</pubDate>
		<guid isPermaLink="false">http://www.kirstenwinkler.com/?p=1326#comment-567</guid>
		<description>Very good analysis Kirsten. Pricing is perhaps the biggest challenge to online service providers, but I agree that once the &quot;chasm&quot; between free and subscription is crossed, then price elasticity is relatively low and there is no huge difference between being prepared to pay 10, 20 or 30 euros (Rosetta stone: 1,000 dollars!). That said, Babbel has some really nice design, they have put so much work into this, so I wish them well.</description>
		<content:encoded><![CDATA[<p>Very good analysis Kirsten. Pricing is perhaps the biggest challenge to online service providers, but I agree that once the &#8220;chasm&#8221; between free and subscription is crossed, then price elasticity is relatively low and there is no huge difference between being prepared to pay 10, 20 or 30 euros (Rosetta stone: 1,000 dollars!). That said, Babbel has some really nice design, they have put so much work into this, so I wish them well.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: KirstenWinkler</title>
		<link>http://www.kirstenwinkler.com/there-is-no-free-lunch-babbel-goes-premium/comment-page-1/#comment-566</link>
		<dc:creator>KirstenWinkler</dc:creator>
		<pubDate>Tue, 10 Nov 2009 20:39:13 +0000</pubDate>
		<guid isPermaLink="false">http://www.kirstenwinkler.com/?p=1326#comment-566</guid>
		<description>Thank you Markus :). I will try to send you a better copy of the picture. And watch out for the Indians ;).</description>
		<content:encoded><![CDATA[<p>Thank you Markus <img src='http://www.kirstenwinkler.com/wp-includes/images/smilies/icon_smile.gif' alt=':)' class='wp-smiley' /> . I will try to send you a better copy of the picture. And watch out for the Indians <img src='http://www.kirstenwinkler.com/wp-includes/images/smilies/icon_wink.gif' alt=';)' class='wp-smiley' /> .</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: mkwi</title>
		<link>http://www.kirstenwinkler.com/there-is-no-free-lunch-babbel-goes-premium/comment-page-1/#comment-565</link>
		<dc:creator>mkwi</dc:creator>
		<pubDate>Tue, 10 Nov 2009 20:24:55 +0000</pubDate>
		<guid isPermaLink="false">http://www.kirstenwinkler.com/?p=1326#comment-565</guid>
		<description>Hello Kirsten, Once more, I&#039;m impressed by your expertise. Obviously, I have different opinions on some issues. And this picture is absolutely hilarious. Do you have a high-resolution file for print?&lt;br&gt;&lt;br&gt;All the Best,&lt;br&gt;markus</description>
		<content:encoded><![CDATA[<p>Hello Kirsten, Once more, I&#39;m impressed by your expertise. Obviously, I have different opinions on some issues. And this picture is absolutely hilarious. Do you have a high-resolution file for print?</p>
<p>All the Best,<br />markus</p>
]]></content:encoded>
	</item>
</channel>
</rss>
