24. We always think our product could be better
(and so we underprice ourselves)
25. Yet a lot of great SaaS companies do it all the time
In their first two years:
● Raised prices by 8x
● Removed free tier
● Added 2 more paid tiers
● Added enterprise
ARPA went up 240% and
conversions didn’t drop
Launched in 2001 with cheap
pay-per-email model
Added subscription plans in 2007
with 2 usage-based variables:
contact list count & send limits
More recently started monetizing
feature add-ons & new products
(MailChimp PRO, Mandrill)
$400m in revenue in 2016
without ever raising VC money
Tested 9 different price points in
2014 alone
Most successful change was
breaking down main product into
different sets of features according
to their ‘jobs to be done’
Went from having positive to
negative Net MRR Churn
26. Launched PRO+ ($70)
$10k in MRR from expansions alone
Last year we embraced pricing with great results
Raised price of PRO from $25 to $35 (new users only)
No drop in conversions!
Average Sale Price
Moved branding removal to PRO+
Signup-paying (PRO+) increased by 240%
27. #1 | Product always comes first
#2 | Growth loops > growth hacks
#3 | Embrace pricing & packaging
To recap...