Seller Beware: Pricing Models That Can Break Your Business - The Bootstrapped Founder
Reading Time: 5 minutes There are a lot of great ideas when it comes to optimizing your pricing to attract more customers or keep them retained. Two pricing models can be hazardous if not implemented carefully: freemium accounts and lifetime accounts. The Risks of Freemium Accounts A freemium pricing model can be great to get people to use your product, integrating … Continue reading Seller Beware: Pricing Models That Can Break Your Business
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That was a great post. Thanks for sharing it. Definitely something to think about as a lot of newbie entrepreneurs think they should just give everything away for free and people will come. They don't think about the associated costs immediate and future ones.
Thank you!
Particularly as developers who grew up on free open-source tools, we often have trouble understanding the monetary value of services. That makes it very hard to understand that our users might have a very different understanding of value, and they will act accordingly.
And of course, future costs of free users using your product are something to always keep in mind when pricing.
I have heard the perils of freemium before but not lifetime accounts. Really informative read. Thanks Arvid!
Thanks. It's pretty rare in most SaaS businesses, but it does happen. Many founders use them as a way to bootstrap their customer base, and then forget to remove the plan :)
Really enjoying your newsletter, keep it up!
Thank you, that's very kind!