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Estd 4.22.2023
Based on the principles outlined in our SaaS pricing book, Price to Scale, the answer depends on your short-term goals and your current ability to iterate on feedback:
• If your primary goal during beta is to gather extensive user feedback and rapidly iterate, keeping beta free can lower barriers and increase participation. A free beta attracts a wider range of users, providing a broader spectrum of feedback that might help refine the product.
• On the other hand, charging even a small fee during beta can be a powerful signal that your product has real value. This approach means the users who do sign up are more likely to be committed and willing to provide thoughtful, granular feedback—essential for validating demand and your pricing hypothesis.
In Price to Scale we discuss that pricing decisions are highly specific to your product and market. As highlighted in the book, every pricing decision involves balancing immediate market-share goals with long-term revenue optimization. Our case studies—such as the evolution seen with companies like Nosto and Slack—illustrate that there isn’t a one-size-fits-all answer. Instead, you should consider:
• What feedback is most valuable at this stage (broad usage vs. deep engagement from committed users)
• Your product’s readiness and the robustness of its feature set
• Whether a small fee might help filter for your ideal customer profile
Ultimately, if you need rapid feedback and want to encourage widespread adoption, a free beta may be best. But if validating willingness to pay is crucial to your go-to-market strategy—even in beta—a nominal charge can be beneficial. The key is to align your beta pricing strategy with the insights and tradeoffs discussed in Price to Scale to ensure you’re setting the stage for sustainable growth.
In summary, there isn't a one-size-fits-all answer. Choose the approach that best aligns with your beta goals and be prepared to iterate based on real-world feedback.