3 ms·
What's the distribution of revenue per customer? How many users will make $10 a month? $100? $1000? Once you have that info you can segment your customers and
by bartab4u 16y ago
What's the distribution of revenue per customer?
How many users will make $10 a month? $100? $1000?
Once you have that info you can segment your customers and maximize your revenue while being fair to your customers. The more money your customers make the more incentive you'll have to keep them in the FREE category because it maximizes your revenues, but your customers won't be too happy - it's a balancing act.
You may consider just keeping the free account and seeing what the usage is like before segmenting... as badkins pointed out it's hard to raise prices on your existing customers. If you introduce a new "tier" later the high revenue customers will be happy to move over to it, regardless of the price, if it will save them money.