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Price/user + Price/newsroom
2 min read

Price/user + Price/newsroom

From all of the software platforms I have used I can only remember a few that in  prevent people from sharing accounts. And it's ugly!

Instead of using the stick to force customers to pay for all their active users let's explore some ways we can build in better restrictions to encourage customers to go for an upgrade.

Right now our subscriptions are an 'all you can eat' formula. After you have purchased a user that account will not have any restrictions. That's right: unlimited CRM contacts, set up a newsroom for all 350 PR agency customers, send an email campaign with 25000 recipients every day or upload 25GB of assets every day. No limits.

We want to drop the minimal user price for all accounts. As discussed in the previous post we have to keep in account that this will result in downgrade requests..

Limit newsrooms

To account for those downgrades we are thinking about introducing a newsroom limit on the number of newsrooms in the expert account. Additional newsrooms can be purchased in bulk whenever the limit is exceeded.

Expert comes with 5 newsrooms, but no minimal user count

Additional newsrooms can be purchased in bulk:

  • 30euro/newsroom for first 10
  • 20euro/newsroom between 10 to 25 newsrooms
  • 10euro/newsrooms between 25 and 50 newsrooms
  • 5euro for any newsrooms over 50

The numbers

Applying this logic to the example dataset we'll see a 42% increase on the baseline. Obviously this extra 42% is coming from the newsroom pricing we introduced.

The segmentation shows that PR agencies are affected the most while brands see a 12% increase. As for the different revenue streams we have just created an entirely new 30% revenue stream.

Conclusion

Introducing an extra limitation for larger / agency accounts that ensures we grow together with our customers looks like a great idea.

A 42% revenue increase is unrealistic though. For our customers this smells like a cheap extra trick to squeeze out more. As mentioned in the starting post we have no intention the price for existing customers. So that raises the question: Does this extra revenue stream allow us to lower price/user? Let's see.

Scoring this model on a scale from 0-5.

Does this lower barrier of entry for people exploring Prezly? ⭐️️️️⭐️️️️⭐️️️️
Does this encourage our customers to add more users? ⭐️️️️⭐️️️️