Hi, we are starting to launch the subscription version of our B2C SaaS, and since I've never done this before I would love to get some feedback on what we are doing.
So we are building www.BuyLocalized.com, it's a Made in USA filter for Amazon. It doesn't work great at the moment, the thing is we have to do a lot of manual research. To make it work great will be thousands of hours more and I don't know if we want to try and raise money to do that without serious validation. Due to that and my experience in digital marketing I figured we will make a big push to sell it now, while freezing building it, and then take stock afterwards.
Currently we have 3 tiers. A free unsigned in tier where people get access to just a few results. A signed in tier, where people who have given us their email address get access to a lot more results, and then a paid tier where they get all results, and access to a modal with more results and some filtering options.
We also have a free trial for the third tier. People who sign up for it give us their credit card right away, but their first billing period is 6 weeks, and they can cancel within the first 2 weeks no questions asked. Most people sign up for a year, and they get that same 2 week free trial.
We have those 3 tiers because of the value of an email address. The only way we have of contacting our tier one people is a little announcement bar we can put links into, getting the email address of a user allows us to much more easily convey our message and try and upsale them.
Our yearly plan is $24, and our monthly plan is $3. The pricing is a large issue. With the cost so low we will be dependent on either an absurdly cheap cost for acquiring free users, or a much higher premium tier adoption rate than I read is standard. We did a pricing survey and around this is what seemed to fit our beta users expectations.
So what I've written out, does it make sense? Is this a logical set up? For the moment we are concentrating on turning cold traffic into tier 3 sign ups, we are finding out if we will be able to do that. If not we will spend more time on upselling our free users to paid. Neither of us have ever built a SaaS before and I worry we might be messing this part up.
(We are launching our new website in a few hours, I know, our current one has issues!)