Doing the work

Why does Krish Subramanian call your price the strongest lead filter you have?

The short answer

Krish Subramanian built Chargebee out of Chennai and is unusually candid that they got pricing wrong four times before it worked. A freemium tier of ten free invoices a month pulled in tiny consultancies who treated it as a permanent free tool rather than a trial. Pricing too low attracted customers who never perceived value, which is where his line comes from: pricing is your strongest lead filter, so a low price does not just cost you margin, it changes who shows up. They also spent years failing to find the right value metric. He goes further than most and calls pricing transparency overrated, arguing it is worth experimenting with hiding prices if lead quality is the problem you are solving. Kyle Poyar's benchmark work gives you the market to test yourself against: hybrid pricing rose from 27 to 41 percent of companies year over year while flat fee fell from 29 to 22, and median free to paid conversion across 200 B2B products sits at 8 percent.

Go deeper, your way

4 hand-picked resources, 2 India-specific, 4 link-checked. Pick how you want to dig in.

The same ground, at another level

How how great operators think reads from a different seat.

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Terms in this answer

Freemium

People also ask

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