It's a strategy for avoiding signups from users that are unlikely to convert to sales. In the early stages of finding product-market-fit flexibility in pricing

It's a strategy for avoiding signups from users that are unlikely to convert to sales. In the early stages of finding product-market-fit flexibility in pricing and limiting users to people that are strongly aligned with what you're doing can be pretty effective at figuring out how the product should look and be priced once you're ready to scale out to any users.