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> As a service provider, I love using usage-based pricing models as it means I can focus all my energy and effort on what I do best: running a service. It lets
by mjwhansen 7y ago
> As a service provider, I love using usage-based pricing models as it means I can focus all my energy and effort on what I do best: running a service. It lets me focus on the quality of my service above everything else. Usage-based pricing also allows me to scale my service’s revenues without hiring a large fleet of sales reps.
> Usage-based pricing with automatic volume discounting incentivizes both parties to grow and win together. Neither party is in an adversarial position with the other.
As someone who runs a company with a pay-as-you-go, automatic-discounts pricing model, these points resonate strongly. We are always aligned with our customers and our metrics and incentives are very clear: do things that make it more useful for the customer.
We have had to add enterprise options because of customer demand, though. Enterprises really don't like unpredictable pricing and so we've had to create various flat-rate options for them.
We've found the pay-as-you-go freemium to be a great compliment to enterprise plans, though. People within a company can try out Geocodio for free or very cheaply (i.e., no PO required, just throw it on their boss's P card), make sure it's what they need, and then make the case internally. As a result, we don't have to do any outbound sales. The pricing model does it for us.