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independence4 unconnected · 5 more authors in those circles
applies to

b2b, no audience needed

assumes $100 and up

confidence

high

evidence

12 claims · 10 articles · 4 receipts

window

2012-11-12 → 2024-09-09

4 builders who never spoke to each other

Put a tier above the one you thought was the top

A more expensive option is almost pure upside: a share of buyers self-select into it, the build cost is usually a toggle, and nobody who was already buying gets priced out. The trigger is prospects asking for bigger limits or hands on help, or one large account distorting a small product's revenue. Expect it to sell in tiny numbers and still carry a disproportionate share of the money, and ship the features that genuinely justify it before you split the range.

The method

  1. 01

    Add a high-end license tier priced at a multiple of your standard one; a share of buyers will self-select into it and the revenue is almost pure upside for the cost of building the option.

  2. 02

    Rank pricing work above feature work on return per hour, because the implementation cost of a new option is trivial next to the revenue it can unlock.

  3. 03

    Add plans above your current top tier for heavy users and companies, once usage limits give you something to charge for.

  4. 04

    Add high-touch upper tiers as soon as prospects start asking for bigger limits and hands-on help.

  5. 05

    Add expensive packages above your existing price rather than replacing it: nobody is priced out, and the top tier can nearly match the revenue of everything below it

What it returned

  • 20

    An unlimited license at about three times the single-site price, added on May 20, sold three copies before month end, roughly $1,000 and about 40% of Pegasus's record $4,043.88 month.

  • $1,000

    Zue credits a Ben Orenstein talk for prompting the test, and describes a single toggle for an unlimited license as having earned about $1,000 in its first ten days.

  • $500

    New plans introduced at $500, $1,000 and $1,750 per month for larger businesses

  • Planned higher priced MDX.one tiers for heavy users and businesses, with multiple active blogs per account as the differentiator.

Sources

the second source

Three plays a week, for the phase you are in

No roundup of links, no news. Three tactics more than one builder arrived at separately, with the numbers each one returned and the disagreements left in.

One email a week. Unsubscribe in one click, and the address is used for this and nothing else.

More in pricing

all pricing plays

the second source

Three plays a week, for the phase you are in

No roundup of links, no news. Three tactics more than one builder arrived at separately, with the numbers each one returned and the disagreements left in.

963 corroborated plays to draw from · 3 a week

One email a week. Unsubscribe in one click, and the address is used for this and nothing else.