Growth November 29, 2019

Increase revenue by selling new features as paid add-ons

Growth Bites @growthbites

If one of your new features will only appeal to some of your users, try offering it as a paid add-on.

The only feature that ever significantly moved the needle for Josh Pigford of Baremetrics ($107,000/mo) was one that he made available as a paid add-on. He was frustrated that his new features never led to growth, but when he eventually launched one as an add-on, he saw a big increase in revenue. This tactic worked well with this specific feature because not everyone would have used it — if he had bundled it into the normal price, it may have gotten buried with the other features, and those who used it would have been undercharged.

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  1. 3

    The only trouble with this approach it can be met critically. I think the add-ons work if they have a semblance of logic. Recently saw a website for roommates search that requires a membership to receive messages from prospects. That is just a money grab. I think the add-on should make sense according to the product.

    1. 2

      Great point! It's gotta make sense, but if used well it can be really beneficial

  2. 3

    I’m currently working on this for SongBox. I’ll soon be offering instant sms alerts as a one time purchase “bolt on”. I think it will bear fruit for me.

    1. 2

      Nice, good luck! Hope it works well for you

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