Wednesday, January 18, 2006

[BB] The cost of getting a new Bb customer

FYI:  One of my daily newsletters, Wired Campus, included a blurb about Blackboard's cost of acquiring customers.  If you are interested, read on and check out the link.
 
The Economics of Blackboard: For Blackboard, the popular provider of collegiate course-management systems, new clients don't come cheap. A new study estimates that Blackboard spends about $259,000 -- mostly on software demonstrations and proposal writing -- for each college it woos. To make that fee worthwhile, writes the blogger Michael Feldstein, the company tries pitching its wares to university systems rather than individual campuses. And Blackboard makes it a point to "upsell and cross-sell like crazy," aggressively offering additional products to institutions that already use its learning-management system, Mr. Feldstein says. On the one hand, that's just capitalism at work. But on the other, it's in sharp contrast to the economics of open-source digital course management, in which the virtues of new products are self-evident and require little promoting. (e-Literate)
Bill Vilberg
305-284-3949 (work); 786-218-3052 (cell); 305-255-9138 (home)