Increase revenue per user. Learn from Slack, Hotjar and more.
Add a decoy option to shift choices up
Add a strategically bad option that makes your preferred plan look like an obvious deal. It's behavioral economics in action.
Add usage-based pricing
Charge based on what they use. They grow, you grow. No awkward tier jumps.
Build expansion revenue into the product
The best SaaS companies grow revenue from existing customers. Design your product so that as teams succeed, they naturally spend more.
Charge more and position on value
Higher prices attract better customers who churn less. Superhuman charges $30/mo for email. Basecamp charges $349/mo. Both win.
Cut your pricing options
More choices means more anxiety. Fewer tiers, higher conversion.
Design a freemium gate that converts at scale
A generous free tier that lets users get hooked, with premium features that matter exactly when users are ready to pay.
Gate features based on natural user progression
Free tier should prove value. Premium should unlock power. Gate features users naturally want after getting comfortable.
Launch a lifetime deal on AppSumo
Trade long-term revenue for immediate cash, a wave of users, and reviews. AppSumo gives you an audience you'd spend months building yourself.
Make them feel the limit first
Don't ask users to pay before they've gotten value. Wait until they hit a limit that hurts, then offer the upgrade.
Offer annual billing with a real discount
Monthly subscriptions churn 3-5x more than annual ones. Give people a real reason to commit for a year.
Require credit card upfront for trial
Requiring a credit card for free trials dramatically increases conversion. People who enter a card are serious.
Show upgrade prompts in context
Prompt upgrades when users hit actual limits, not randomly. The upgrade makes sense when they feel the constraint.
Test longer free trial periods
Your trial might be too short to show real value. Test longer trials. Research shows they work.
Trigger the upgrade at the moment of need
Stop sending users to a pricing page. Show the upgrade exactly when they hit a limit and really want the feature.
Monetization experiments focus on increasing revenue per user through pricing optimization, upsells, reducing friction to purchase, and improving conversion from free to paid.
If you have strong retention but low revenue per user, focus on monetization. If you have few users but they pay well, focus on acquisition. Generally, optimize the 'leakiest' part of your funnel first.
A/B test pricing tiers with new users (not existing customers). Test one variable at a time. Measure conversion rate AND average revenue - sometimes higher prices convert fewer but earn more overall.
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