Lean Pricing: Pricing Strategies for Startups (Hors collection)

You should determine your ideal ratio of free vs. paid customers,

you have a free plan in place, analyze the usage patterns to identify the power-users, they are likely to be the ones to upgrade.

reasonable notice of two to three months.

In the case of freemium, the cost to acquire is the cost to convert a free user into a paying customer.

A/B testing on the same product or service offerings (i.e. until the very last detail) is something to avoid. The

A pricing strategy that takes into account the cost of sales helps overcome this problem. A cost of sales based method is an attractive start and a good basis for a pricing strategy.

One way to keep the value-for-money perception yet signal quality is to use prices that end in .95 instead of the .99 ending. LinkedIn,

Competitors, and consequently their prices, are as much a factor in the market as customers so they should not be ignored.

Make sure new customers can afford to get on board, but also that customers who extract the most value, pay the most money—e.g.