Pricing can kill your product, or make it soar. To start with, create pricing tiers and make pricing easy and convenient for your customers. Beyond that, the decisions are difficult, such as usage-based vs. predictable pricing. In this presentation we discuss the key principles of pricing and app or online service, showing the pros and cons of your choices.

1. Picking the Perfect Pricing Model
that Fits Your App and More
Marten Mickos
CEO
HackerOne
@martenmickos

2. Perfect Pricing Model?
● Easy to make the first purchase
● Scales while you sleep
● Straightforward to justify to Economic Buyer
● Painful for competitors to match

3. Customers look for
convenience and
predictability of cost.

5. When Net Revenue
Retention is high
you know your pricing is working.

6. Snowflake NRR 169%

7. Pricing

8. A way to think about
pricing is to think about
LifeTime Value (LTV).

9. $68 for green shrub in a game

10. Some people spend time to
save money. Others spend
money to save time.

11. Pricing models
Model Customer benefit Customer disadvantage
Subscription fee Predictable You pay even when you don’t use
Consumption pricing You pay only for what you use Unpredictable, may escalate
Tiered pricing
(Good - Better - Best)
You pick the tier you like Tiers are always designed to make
you want to upgrade
All in one Simple choice You pay for features you don’t use
Component pricing You pay for the features you use Complexity of choice and pricing
Freemium Starting is free
… and there are more
Note: You can mix and match some of the above models.

12. Pricing that works for
early customers
may not be right for the mainstream market.

13. The best pricing makes
both buyer and seller
successful.

14. THANK YOU
marten@hackerone.com