[ig1]

Make it an annual sub if you think $3/month sounds too cheap. But in general pricing is one of those things you only learn by trial-and-error, so stick up an A/B test and see what converts better.

edit: Also offer multiple levels of pricing, offer a "premium" product with a few extra bells and whistles for people who want to pay more.

[byoung2]

Definitely follow the above advice and A/B test to see which one converts. I personally don't think $3/mo is too cheap for B2C (e.g. Skype has a $2.95/mo plan). Even B2B can be pretty cheap (when I was just using Amazon S3 I had bills of just a few pennies).

[egmike]

Thanks you two, that's good advice... and I'll definitely be offering multiple packages for premium usage. :)