A friend of mine operated a pledging type service for donations, and he said in a conversation that less technologically sophisticated users definitely had higher willingness to pay. What's your evidence?
I define a power user as someone with technological sophistication. For example, one of the features Matt Cutts mentions is filtering your mail using regular expressions. That requires technological sophistication.
Being more comfortable with computers, technologically sophisticated users are more likely to google around to find free or cheap alternatives to a product they see. Thus, companies in a market with technologically sophisticated users compete more on the basis of price and less on the basis of advertising than other companies. This makes it harder for these companies to make a profit.
It's true that technologically sophisticated users will be more likely to see the merits in Matt Cutts' startup idea. But that's a defect, not a feature.
I define a power user as someone with technological sophistication. For example, one of the features Matt Cutts mentions is filtering your mail using regular expressions. That requires technological sophistication.
Being more comfortable with computers, technologically sophisticated users are more likely to google around to find free or cheap alternatives to a product they see. Thus, companies in a market with technologically sophisticated users compete more on the basis of price and less on the basis of advertising than other companies. This makes it harder for these companies to make a profit.
It's true that technologically sophisticated users will be more likely to see the merits in Matt Cutts' startup idea. But that's a defect, not a feature.