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  • The Hack

    ‘Unbundle’ Features to Grow Revenue

  • AARRR stage 


  • Growth Problem

    How to Grow Revenue by Offering New Plans


So, you have your free plan. And then you have your high-end plan.

And then there’s the pricing desert that lies between these two.

A barren wasteland littered with the bones of canceled subscriptions and full of buzzards, a.k.a. your competitors, circling and waiting for your current users to get tired of your free plan’s spartan features.

However, these users are not willing to sacrifice their firstborn in order to access your feature-rich but overly pricey ‘premium’ plan.

And the real problem here is that you have not provided them with an in-between option.

Don’t be ashamed though – plenty of other startups don’t think through their pricing policies with enough care.

It’s not just you! But. BUT! That doesn’t mean you can continue to keep users pinned between the pricing equivalent of a rock-and-a-hard-place.

See how you can hack your revenue by switching up your pricing plans.

Just Hack It:

  • The trick here is to take your current top-end plan and ‘unbundle’ it
  • Sound familiar? It’s what your airline does when it tells you that you have to pay for your salted peanuts and Adam Sandler movie. True, this can be a bummer in certain situations
  • But your app is not one of those situations. Because such a pricing strategy can substantially grow your revenue and profit almost immediately
  • You first need to scrap your free plan, No, really. Just get rid of it
  • Then take a good, hard look at your analytics. Or better yet, do that AND go ask your customers about the features they value and why they value them
  • When you have a pretty good handle on this, you can start to create a tiered pricing structure that will deliver value to your different users
  • For simplicity’s sake, stick to the pricing ‘rule of three’ and design three pricing plans
  • Just be careful about how you roll this out to your current customers who may not be very receptive to a radical change in price
  • For valuable customers, you can always keep them on your old plans in perpetuity as long as there’s a business case for continuing to do so
  • There, you’ve just tripled your revenue!
  • Money talks, free plan walks.

Source or Inspiration:

How 3 Little Changes Increased Average Revenue Per Account (ARPA) by 296%/

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