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Tiered Price/User. No minimum.
1 min read

Tiered Price/User. No minimum.

Taking away the minimum user count from both the professional and expert subscriptions is a very simple thing to do.

The good news about this is that it would lower the price barrier for people in buying/consideration mode and would likely result in more trial signups as there is less of a sticker shock.

The big question (and bad news) is what this would mean for our current customer base. We know for a fact that there are customers that are not using all of the seats in their account.

The numbers

There are two inputs to use to do the math on this model:

  • Optimistic - # user accounts: Users that are invited/have an active seat. This also includes dormant accounts that have a login/password but are not using Prezly.
  • Pessimistic - #active user accounts: We can filter the list of active user accounts by the ones that are really using Prezly (logging in in the last 30 days). This is making the assumption that accounts might disable dormant/unused seats reducing the number of user accounts even more.
No more Minimal User Count - Optimistic & Pessimistic Model

The reality here is that we don't know how many accounts are going to downgrade but the revenue loss will be in between 5% and 37%.

Conclusion

Taking away the minimal user count will decrease our revenue. The only upside to this might be that people might be more inclined to trial the product.

Up to the next!