Specifically for an app (B2C) where higher usage doesn't incur significant higher costs.
To keep it simple, the idea would be to charge a fixed amount per month, and once a minimum usage threshold is reached, cancel the payment subscription and let the user continue using the app for free (forever, updates included).
Current thinking for why this is a good idea:
I am looking for counter arguments, or any observations really.
Thanks!
A little early where am I at, but the first issue I see is a problem for investors? How would you continue generating revenue from your users if they don't pay after a minimum use threshold? Sponsorships? (Also besides investors how would you keep paying for costs if the free users' usage outweighs the paid users' revenue generated?)
I also think because you're targeting B2C I'd recommend watching the initial pricing as people generally like to spend less upfront
Thanks for the comment!
Something I missed to point out is that I'd calculate that minimum threshold (in minutes or hours) using a reasonable expectation for usage / day, so that most users (the tip of a bell curve) would need around 2 years to reach; so that CLV would be maybe less, but still in the same ballpark of the CLV for a typical subscription model.
There is a good point about free user costs outweighting paid user revenue; but if I have this problem means that I have been very successful already :) (compare eg. with freemium model, in which you can have this problem way before being successful).
Sounds like a plan!
Also agree even if they're free there should be plenty of opportunities to find ways to monetize the audience without charging them directly