Youtube Video

Summary published at 10/15/2024

💡 Pricing is crucial for startups. It can determine the success or failure of your product.

🚫 Mistake #1: Avoid subscription models unless necessary. Customers dislike subscriptions due to ongoing costs. A one-time payment can be more appealing.

💰 Example: A $10/month subscription with a **10% churn rate** vs. a **$100 one-time payment**. Over a year, the subscription may yield **$7,176**, while the one-time payment gives you **$10,000** upfront.

📊 Mistake #2: Not anchoring your price. Use price anchoring to help customers understand the value of your product by providing a comparison.

🆓 Mistake #3: Free plans can hinder growth. Removing free plans can lead to better user engagement and faster profitability.

Mistake #4: Free trials often lead to low commitment. Consider offering limited actions instead of time-based trials to encourage immediate engagement.

💵 Mistake #5: Pricing too low can signal low value. Aim to price higher than you think your product is worth. Avoid pricing below **$19** for one-time payments and **$5/month** for subscriptions.

🔍 Research competitors to find a suitable pricing range. These insights are based on experiences from building **24 businesses** and can be adapted to your own strategies.

Download our Chrome extension for Youtube summaries