Startup Tips

Startup Tip #9: Never offer “unlimited” plans

Startup Tip #9: Never offer “unlimited” plans https://baremetrics.com

Pricing products is hard.
I get that.
When you’re brand new to pricing, it’s easy to think “If I can 6get anyone to pay me $99 a month, I’ll be set!”
You’re itching to make some money, any money, and you’ll give away the farm to try to entice people to fork it over.
But stop.
Stop giving it away.
Chances are you’re already charging far too little.
Having an “unlimited” plan just puts the nail in the coffin.
Here’s why.
You should be pricing based on value.
And how you price should scale in parallel to the value your customer is receiving.
With that in mind, does “unlimited” makes sense?
No!
Because they get “unlimited” value while you just capped how much revenue you can make on any given customer.
Now would be an appropriate time to facepalm.
Do you realize how bad of a move that is?
The type of customers who will make use of that “unlimited” plan are the exact customers who will be more than happy to pay you exponentially more than you’re charging!
Never offer “unlimited” plans