I've written about this topic in more depth previously[0] (warning, it's long) and there is really no straightforward answer. Now, I should note: I'm a YC Foun

I've written about this topic in more depth previously[0] (warning, it's long) and there is really no straightforward answer. Now, I should note: I'm a YC Founder, so take my thoughts with a grain of salt. I've been "trained" by YC to think in terms of building businesses around raising VC funding and to scale quickly. (Software businesses tend to be very good at scaling compared to, for example, pure consulting where `$X = X Hours`. That doesn't mean you _have to_ scale though!) Now, given that caveat, if you are looking to raise funding the future, then investors care a _lot_ about Monthly Recurring Revenue (MRR) which can be extrapolated into Annual Recurring Revenue (ARR). That means selling a subscription with a low churn rate ("sticky") so that you can make confident predictions about your growth. That underpins why VC money exists: If you can demonstrate that buying $1 of Google Ads gives you $1 more in MRR, then you can run the math to show how quickly you can grow if you were to re-invest every dollar earned back into the business to reach some % of growth per month. (Imagine graphing something like `y = x` from algebra.) By taking funding, you can "teleport" your growth to a future point of on your graph by buying more ads _now_ instead of waiting. This is the basis by which you calculate the value of your business (valuation) and how much % the investors get. Also, many business tend to benefit from "economies of scale" so your function might actually become `y = 2x` with more funding. Now, if you're thinking about going that route, then I'd recommend trying to structure your pricing around MRR to make your life easier. (Even companies like JetBrains do this by selling "corporate license bundles" with a multi-year time frame and a minimum seat commitment.) But if you're _not_ looking to raise VC money, then you can take a different approach like what you list up above. That said, and this is probably the most important part of text here: Pricing is not the hardest part of building a business. Getting people to give a sh*t is the hardest part and that's best achieved by solving a real problem that they care about! You can always undercharge and fix it later once you actually understand the business + sales side. Until then, focus on the product and, if you're looking to fundraise, go apply for YC's Winter 2023 batch[1]! (Do it ASAP for maximum odds) Good luck and feel free to email me (see my profile). :) 0: https://www.lunasec.io/docs/blog/how-to-build-an-open-source-business-in-2021-part-1/ https://www.lunasec.io/docs/blog/how-to-build-an-open-source... 1: https://www.ycombinator.com/apply/ https://www.ycombinator.com/apply/