the startups.com platform about startups.comCheck out the new Startups.com - A Comprehensive Startup University
Education
Planning
Mentors
Funding
Customers
Assistants
Clarity
Categories
Business
Sales & Marketing
Funding
Product & Design
Technology
Skills & Management
Industries
Other
Business
Career Advice
Branding
Financial Consulting
Customer Engagement
Strategy
Sectors
Getting Started
Human Resources
Business Development
Legal
Other
Sales & Marketing
Social Media Marketing
Search Engine Optimization
Public Relations
Branding
Publishing
Inbound Marketing
Email Marketing
Copywriting
Growth Strategy
Search Engine Marketing
Sales & Lead Generation
Advertising
Other
Funding
Crowdfunding
Kickstarter
Venture Capital
Finance
Bootstrapping
Nonprofit
Other
Product & Design
Identity
User Experience
Lean Startup
Product Management
Metrics & Analytics
Other
Technology
WordPress
Software Development
Mobile
Ruby
CRM
Innovation
Cloud
Other
Skills & Management
Productivity
Entrepreneurship
Public Speaking
Leadership
Coaching
Other
Industries
SaaS
E-commerce
Education
Real Estate
Restaurant & Retail
Marketplaces
Nonprofit
Other
Dashboard
Browse Search
Answers
Calls
Inbox
Sign Up Log In

Loading...

Share Answer

Menu
Freemium: How should one go about pricing and creating a subscription model for a business?
TW
TW
Tom Williams, Clarity's top expert on all things startup answered:

You have two questions. One is how to actually establish a price or pricing plans, the other are tactics most useful after pricing has been established.

I think Laura provides some great tactics around pricing but as I read her answer, I think it addresses the tactics part less than the pricing part so I'll focus exclusively on how to find the right price.

First, I'd suggest you go to http://www.harrisonmetal.com/ and scroll down the page to find their workshops on pricing. I've attended their class on the subject in-person and they have published the course materials on their site.

Pricing is part art, part science. It comes from understanding what other offerings exist in the marketplace and how your offering differentiates. So for example, customer development that focuses on understanding how your customers perceive your offering against competitive offerings would provide clues and insights into whether it might make sense to price your offering higher or lower to your competitors. Pricing is also entirely dependent on it's related messaging. Decisions are made and confirmed by two entirely different parts of our brain, and so appealing to intuition or emotion without providing context for the logic/rational part of the decision will often fail to complete the sale.

Happy to talk to you about any of this in a call with you, if you'd like.

Talk to Tom Upvote • Share
•••
Share Report

Answer URL

Share Question

  • Share on Twitter
  • Share on LinkedIn
  • Share on Facebook
  • Share on Google+
  • Share by email
About
  • How it Works
  • Success Stories
Experts
  • Become an Expert
  • Find an Expert
Answers
  • Ask a Question
  • Recent Answers
Support
  • Help
  • Terms of Service
Follow

the startups.com platform

Startups Education
Startup Planning
Access Mentors
Secure Funding
Reach Customers
Virtual Assistants

Copyright © 2025 Startups.com. All rights reserved.