Money, Pricing & Model

What is a value metric and why does it matter for pricing?

A starting point

Your value metric is what you charge for, per seat, per email sent, per GB, per transaction, and getting it right matters more than the actual number. A good value metric grows as the customer gets more value, so revenue expands automatically as they succeed. If you get everything else wrong but nail the value metric, you'll still be fine.

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📄 Article
Free Intermediate

Pricing Your SaaS Product

From lennysnewsletter.com by Patrick Campbell (ProfitWell), via Lenny's Newsletter long-form guide

Why we picked it

Patrick Campbell built ProfitWell on pricing data from thousands of companies, and this is the single best free deep-dive on SaaS pricing strategy. It's the canonical starting point for value metrics, segments, and packaging.

  • Get your value metric right and you can afford to get other things wrong
  • Pricing is built on quantified buyer personas and willingness to pay
  • Optimize pricing quarterly, it's an ongoing process, not a one-time decision
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📄 Article
Freemium Intermediate

The Ultimate Guide to Willingness to Pay

From lennysnewsletter.com by Lenny Rachitsky & Patrick Campbell long-form guide

Why we picked it

The most concrete guide to actually measuring what customers will pay, including survey methods and tier design. It turns pricing from guesswork into a research-driven process.

  • Measure willingness to pay directly through structured customer research
  • Design tiers around distinct customer segments, not arbitrary feature bundles
  • Localize pricing by market and currency to capture willingness to pay everywhere
Open lennysnewsletter.com →

People also ask

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