4 ms·
> But if you add a $40/yr tier, 80% (800) of your clients would still only spend $10, earning you $8000. But the remaining 20% (200)will buy that $40 package in
by dna_polymerase 3y ago
> But if you add a $40/yr tier, 80% (800) of your clients would still only spend $10, earning you $8000. But the remaining 20% (200)will buy that $40 package instead of $10. This generates an extra $6000. By creating this second package, your yearly earnings go up 60% to $14,000 in ARR.
So 20 % of the user base now contribute 42 % of revenue. Also, why would everyone agree to pay 4x or 8x more than the original $10 ?