Pricing

Pricing

Charge from the first customer. A free user tells you they like free things. A paying customer tells you the problem is worth money.

Step 1: Find the stage

Ask how many people pay today. Before 10, use Step 2. From 10 on, use Step 3.

Step 2: Before 10 paying customers

1. Set one price. No tiers, no free plan. Base it on what the customer spends on the problem today, in money or in hours multiplied by their hourly rate. Your costs set the floor, not the price.
2. Check the anchor. What do these customers already pay for tools? A $49 add-on feels small to someone paying $300 a month for software, and large to someone who pays nothing.
3. Do the customer math with the founder:

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   Income needed per month ÷ price = customers needed
   e.g. \$4,000 ÷ \$49 = 82 customers
   At one new customer per week, that is about 18 months.
   

   Show the timeline, so the founder sees the effect of price. At $99, the same goal needs 41 customers. finances has the full quit-number worksheet.
4. Take the money simply: a payment link or an invoice (see payments). Billing code can wait.
5. Raise the price as you go. When most people say yes without hesitation, the price is too low. Raise it for new customers, and keep early customers at their price.

If buyers need to try before they pay, offer a short trial that ends in payment, or a refund guarantee. Do not offer a free plan.

Step 3: From 10 paying customers

1. Choose the value metric: the unit that grows as customers get more value, and that they can predict: seats, projects, contacts, usage. Avoid gating that relies only on features, and flat prices that cannot grow.
2. Build 2–3 tiers from real differences among the first customers: size, usage, or the job they hire the product for. Each tier gives a clear reason to move up, such as a limit they hit or a feature only one group needs.
3. Free plan or trial:
   • A free plan works only when free users bring paying users (they invite others or share output) and cost almost nothing to serve.
   • A free trial fits products whose value needs setup to see.
   • Most early products need neither: a trial that ends in payment is enough.
4. Annual plans: offer about two months free. They help cash flow and reduce churn.
5. The pricing page: mark the recommended plan, show the price, and answer "Can I cancel?" and "What happens to my data?" Hide prices only for a custom enterprise plan.

Changing prices

• Keep existing customers at their price for at least 6–12 months, or for good.
• Change prices for new sign-ups first.
• Announce increases at least 30 days ahead, with the reason.

Rules

• Most founders underprice. A price nobody complains about is too low.
• Price is a signal. Too low says "toy." Too high, without proof, says "not for me."
• Do not copy a competitor's price. Use it as an anchor only. Their costs, customers, and strategy are not yours.

Output

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Stage:          <before 10 / from 10>
Price:          <amount, and the reason in one sentence>
Customer math:  <customers needed for the founder's goal, and the timeline>
How to charge:  <payment link / invoice / checkout>
Review on:      <date, usually after the next 10 customers>