Transactional vs. recurring revenue, subscription tiers, usage-based and hybrid models, freemium vs. free trial, discount ladders, value-based pricing, price-increase elasticity tests.
11 resources on this topic
Joost Rietveld unpacks how freemium strategies can be effective if properly executed. He draws parallels between SaaS, gaming, and content platforms, exploring key levers like conversion rates, engagement triggers, and monetization points. A thoughtful read for those designing freemium models or evaluating them.
Bobby Pinero discusses how introducing a freemium tier at Equals led to a spike in sign-ups but damaged engagement and revenue. He walks through the misalignments in onboarding, value delivery, and support strain, offering five concrete lessons for anyone considering freemium models. Cautionary and highly actionable.
Tomasz Tunguz explores SaaS pricing models—seat-based, usage-based, and tiered—and how they affect customer retention, lifetime value, and growth potential. The guide includes case studies from Twilio, Snowflake, and HubSpot. A must-read for monetization strategy.
Former Airbnb PM Jonathan Golden outlines a clear framework to evaluate marketplace viability. By mapping products by transaction size and frequency, he shows how to predict and improve unit economics through incentives and pricing. Excellent reference for marketplace builders.
This blog post reveals the untapped potential in the "wrapper economy" – the lucrative middle layer where AI-powered tools and services are packaged and sold. Analytics professionals can uncover hidden revenue streams and gain a competitive edge by understanding the dynamics of this rapidly evolving market, leveraging insights on successful monetization strategies and identifying critical points where AI-powered "wrappers" can make or break a business's bottom line.
This article revisits the 'fallacy of freemium' and explores how businesses can optimize their pricing and revenue models beyond just offering a free tier. It covers key considerations around subscription tiers, usage-based pricing, hybrid models, and aligning pricing with customer value.
Explores how Amplitude leverages product-led growth strategies, including freemium models, free trials, usage-based pricing, in-product activation loops, and the handoff from product-qualified leads to marketing-qualified leads.
This case study explores how Duolingo used a product-led growth (PLG) framework to drive a 4x increase in daily active users (DAUs). It examines their approach to activation, monetization, and growth strategy, providing insights that can inform data-driven product and marketing decisions.
Strategies and tactics for acquiring, activating, and retaining customers through freemium, free trials, usage-based pricing, and in-product activation loops. Covers the key principles and metrics for building a successful product-led growth motion.
Strategies for designing pricing tiers, packaging features, and aligning monetization with customer value. Includes topics like good-better-best pricing, value-based vs. cost-plus models, willingness-to-pay segmentation, and packaging mechanics like usage thresholds and feature add-ons.
This article discusses the data-informed product cycle, which involves translating high-level strategy into models, testing hypotheses, and iterating based on data. It covers key topics like freemium, free trials, usage-based pricing, activation metrics, and product-qualified leads (PQLs).