Comments on: Principles behind a Freemium Pricing Model

By: Updated Pricing Plans | Braintrust.io

Updated Pricing Plans | Braintrust.io — Thu, 08 Apr 2010 04:15:50 +0000

[...] We came up with these pricing plans from scratch using the set of principles I wrote about a few weeks back over in my personal blog (Principles behind a Freemium Pricing Model). [...]

By: Rags Srinivasan

Rags Srinivasan — Wed, 07 Apr 2010 13:36:37 +0000

While what you describe fit many of the pricing plans seen across the web, I believe there needs to be more rigor and analytics behind designing versions and pricing. There are costs to customers in choosing the versions. The startup must also understand the value of different versions to different customers and price them such that those who can and have high willingness to pay will choose the higher priced version and not tempted by the lower priced version.

Pricing and versioning should be strategic decisions driven by customer needs, segments being targeted and alternatives available to customers.

If rigorous customer segmentation analysis is out of reach for a startup the one principle I recommend is Hal Varian’s Goldilocks Pricing.

-rags http://twitter.com/pricingright

By: Tony Wright

Tony Wright — Tue, 06 Apr 2010 19:54:27 +0000

I think these are good rules (though we don't follow any but #1)... Seems like it might make for some artificial complexity. Adding filler and hail mary plans seems to add a lot of noise. I'd A/B test that.

Also, for your FREE plan, I'd suggest giving them ALL PAID FEATURES FOR 14-DAYS. That's what we do. Of course, you encourage them to sign up for a paid plan, but if they don't, say "Hey, we're giving you paid features for X days anyways". If your pay wall is in the right place, a meaningful % of these people will convert to paid instead of lose the features they've grown to love.

Stepping back, I think your biggest problem is positioning-- starting with your home page. Your position is entirely feature-centric rather than benefit-centric. As a small business owner, WHAT ARE YOU GOING TO DO FOR ME?

By: 9 principles behind an effective landing page | Tawheed Kader (TK)

9 principles behind an effective landing page | Tawheed Kader (TK) — Mon, 29 Mar 2010 04:35:43 +0000

[...] a follow-on the my principles for defining a freemium model, I’ve distilled what I’ve learned into a set of principles for creating an effective [...]

By: iPad Links: Monday, March 1, 2010 « Mike Cane's iPad Test

iPad Links: Monday, March 1, 2010 « Mike Cane's iPad Test — Mon, 01 Mar 2010 23:54:46 +0000

[...] $6K With My eBook The $75 eBook: A True Story How Search Engines Process Documents Before Indexing Principles behind a Freemium Pricing Model CopyNazis On The [...]

By: startupbug.com

startupbug.com — Mon, 01 Mar 2010 19:45:43 +0000

Principles behind a Freemium Pricing Model...

It seems that there are only two ways you can go about defining a pricing model for your web app these days. Either you blatantly copy your competitors (or 37Signals if you don’t have any direct competition), or you juggle through different permutation...