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> Based on having run a similar (now mostly defunct) company in the past, I would guess that 80% of their customers are on the $5/mo plan. The founders of Nord
by krn 7y ago
> Based on having run a similar (now mostly defunct) company in the past, I would guess that 80% of their customers are on the $5/mo plan.
The founders of NordVPN have recently invested in Hostinger[1], which has successfully adopted their extremely profitable pricing model: charging for 2-4 years in advance, by default. This way, even those who would have paid $5 / month and cancelled and a few months later, end up spending $100+ for 24-48 months at once, often without having a clear need for it, thus leaving a lot of resources underutilized – and available for overselling. The company has more than doubled in size in the last 3 years, more than a decade after its inception.
[1] https://www.hostinger.com/ https://www.hostinger.com/
- krn 7y agoJust to be clear: I don't find such pricing models customer friendly, and this is just an example of how some companies manage to find their path in such a "brutal low-margin industry". Since shared hosting – just like VPN – is a commodity product, they primarily focus on marketing, sales, and support.