I find it interesting to watch focus groups. Guy Kawasaki moderated a panel discussion for the Revenue Bootcamp called Will anyone pay for anything? This is a group of teens and twenty-somethings and they were asked questions mostly about what they use online, with computers, or cell phones.   While most internet marketers will find it interesting, you really must watch it if you target this age group.

Free was definitely the price point of choice.  Here are a few observations that I recall from watching:

• All members of the panel loved GMail.
• Google is a trusted brand.
• They don’t click on ads unless made to. When clicked, they don’t buy.
• Several had hand-me-down cell phones.
• While all used it, most would not pay for Facebook.
• Not all used Twitter.
• They will pay for online services if their friends are there too and if there aren’t free options.

It is important to note that this was a small focus group and it would be a stretch to apply these conclusions to teens and early twenty-somethings universally.  However, these are important insights. Free and good, will attract them. It is hard to get them to pay beyond that.  I think that Guy got a little frustrated in that he didn’t find much they were willing to pay for!  You remember the lean years as a student, don’t you?