At what point in our startup’s journey should we start charging for our service (immediately at launch or after building a user base)?

Based on the methodologies outlined in our SaaS pricing book, Price to Scale, there isn’t a one‐size‐fits-all answer. Instead, the timing for when to start charging should align with your product’s ability to demonstrate clear value and market fit. Here are some key points drawn from the book:

• Immediate Pricing vs. Freemium:
Many founders initially set prices even if they’re technology experts and may lean on a free model initially to attract early users. However, starting with some form of revenue generation—even if it’s charging for onboarding, training, or implementation—can set the expectation of value right from the start. As mentioned in Price to Scale, when you make the transition from offering something free to charging, clients typically understand the change if they’ve come to expect it around the point of a tangible service or outcome.

• Validating Your Value Proposition:
It’s crucial to have a strong grasp of your business model, revenue trajectory, and how your pricing strategy aligns with long-term growth objectives. If your early users are consistently validating the value of your product, that can be an indicator that it might be the right time to start charging outright. On the other hand, some startups may benefit from building a user base through free trials or freemium models until product-market fit is confirmed.

• The Founder’s Inflection Point:
Price to Scale discusses the moment when a founder decides to move beyond a purely free offering—often when external advice or market signals indicate that your service is poised for a paid model. Charging early may also naturally lead to more disciplined sales and contract processes, which can sharpen your pricing strategy over time.

In summary, if you’re confident that your product is delivering measurable value, moving to a paid model (even if it’s just a modest start) can reinforce that value perception. Alternatively, if you still need to fine-tune your offering and build traction, a freemium or trial period might be more appropriate until you’re ready to scale revenue. The key takeaway from Price to Scale is that your pricing strategy should be an evolving process, closely aligned with your startup’s growth milestones and user feedback.