Lenny's Podcast · Jan 12How to price your product | Naomi Ionita (Menlo Ventures)
Rebalancing plans doubled the upgrade rate to Pro while the Pro price rose about 30 percent. It built its own metering and experimentation system to test value metrics, quotas, price points and promotions, and ran tests in Canada or Australia first.
Tips
- Split premium features into day one and day 100 features▶ 13:58At invoice2go this rebalancing doubled the upgrade rate from Starter to Pro while the Pro price rose about 30 percent.
- Use a hybrid pricing model with quotas per tier▶ 47:12Only around 5 percent of SaaS companies use pure usage-based pricing; the vast majority use a hybrid approach.
- Test pricing by geography and track year-two churn▶ 30:15At invoice2go, an in-house metering and experimentation system tested value metrics, quota limits, price points and promotions, bringing huge revenue gains.
