IMPORTED FROM SKOOL
Original Post was posted by Steven Meyer on Nov '24
For those of you with experience using credit based price models, I’m curious what you’re perspective is on how packaging fits into the broader monetization strategy.
I ask because if you’re using a credit based price model, you presumably have a lot of flexibility with monetizing the usage of various areas of your solution. In that world, limiting access to features through packaging doesn’t seem like it really has a place. I’d much rather focus on giving my customers access to all the features … See more
Michał Narkiewicz • Nov '24
My thoughts:
- Purely credit-based models have high volatility, and as a consequence unpredictable recurring revenue.
- We generally recommend implementing monthly plans with tiers of credits (pay 49$ monthly for a 100 or 99$ for 250, etc.), to bridge the gap between seasonal usage of a service and stable MRR
- You want more than one form of value capture. Credits are fuel. The more fuel a client buys, the higher discount they expect per unit of fuel. As a client scales usage (and value they obtain from … See more
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Maarten Laruelle • Nov '24
Hi
@Steven Meyer
, you still have to sell the new/other features, as in convince the customer to start using them.
Just giving them all functionality and assuming they figure it out on their own will not always be successful. Like you correctly statement you need to focus on encouraging them on adoption/usage. For me packaging here still has a place.
Packaging is strongly related to the maturity of your user, where do we start and what are the next steps they should be taking or who is the next us… See more
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Steven Meyer • Nov '24
@Maarten Laruelle
Thanks, Maarten! Very helpful.
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