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It massively depends on the nature of the service and your target market. A general piece of advice: identify the closest measurable factor(s) to "the more I d
by matt-p 2y ago
It massively depends on the nature of the service and your target market.
A general piece of advice: identify the closest measurable factor(s) to "the more I do $X, the more business value I get out of the service."
For example, if analyzing more data improves business outcomes, consider usage-based pricing (e.g., GBs of data). If the value comes from sharing with other departments or collaborating, then these features could be part of a pro plan, or you might use per-user pricing.
Another important point is that it's usually better to have a customer pay nothing (e.g., a free tier or a 50/50 chance of converting them to a serious plan) than to have a customer who pays inconsistently, such as $0.75 one month, nothing the next month, and $1.10 the following month. These customers are problematic; they'll demand support and play the "I'm paying" card, and you'll incur card processing fees. Avoid this by setting a minimum charge or offering a small free tier to attract users who might pay later.
This is what I often end up at honestly, but it may not suit you;
Lets say each $thing is 1 cent.
Free trial
Requires card, 14 days with 1000 credits (encourage urgency to evaluate now, not later - many eventually forget), customer pays with card for anything over the 1000 in those first 14 days - but is not auto charged for a standard plan on trial end. They are then emailed to encourage conversion or the account will be deleted 30 days from trial end (encourage urgency, keep a clean platform/GDPR compliance).
Standard
$20/User/Month - each user gets 2000 non rolling over credits per month, but that is aggregated at the org level e.g an org with 5 users gets 10,000 credits. Additional credits are 1c.
Pro
Additional features. Depending on how much value those create you either tack on a $featuretax e.g add $10 a user, or if they are just low value nice to haves/quality of life when dealing with large volume, then
trade them for a higher minimum volume so $50/user/month gets you 5000 credits per user.
Anyone who does serious volume come talk direct, but they get a discount in exchange for contractually committed usage.
-Always possible to alert on overages at an account level (100% alert to main contact should be default), cap is usually appropriate too.
This model gets you a load of stuff for free, mid volume users can add extra users for free, or choose extra nice to have features instead or aswell. A minimum charge is instituted per user, regardless of thier usage. User is not feeling like each click costs money "It's included", at least until they're using your platform in volume at which point "they're in". Door is open to doing enterprise/high volume deals.