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Business Models

Pay-What-You-Want Pricing

Pricing and Revenue-Structure Models

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Pay-what-you-want, or PWYW, also called the value-for-value model, is a pricing business model in which buyers pay whatever amount they choose for a good or service, sometimes including zero, with a seller optionally setting a minimum floor price or suggesting a price as guidance. Some pay-what-you-want models fix the price before the purchase, while others defer price-setting until after the buyer has experienced the good or service, similar to tipping, and the model is considered a buyer-centered form of participative pricing.

Cross-Tradition Connections

Associated With

Marketing, Practice Disciplines

Pay-what-you-want pricing, letting the buyer set the price including zero, is studied within marketing practice as a strategy that trades short-term revenue for goodwill and voluntary generosity.

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