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Would it be better for a SaaS B2B company to have a $1/month plan instead of a free plan?

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JASON LEMKIN

No. But maybe $9 or $19/month might be better.

You usually will learn a lot more from paid customers than free users, so when in doubt, charge.

But $1? I dunno about that idea.

Pricing is so confusing in SaaS. Why is Salesforce $200 a seat for Unlimited Edition — while Dropbox is $5? Are the bits better? The code higher quality? The server costs higher? No, no and no.

It’s context.

Pricing in SaaS is almost all about context. What do I also pay for other services of similar value.

And $1 is just too confusing. (Forget about the administrative and other costs).

Price your product within range of a comparable to learn if you have comparable value.

Price outside of context, and it’s hard to learn.

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Published on December 5, 2017
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