What pricing strategy will best balance the need to attract new users with the need to generate revenue in our early stage?

Based on our saas pricing book, Price to Scale, early-stage companies often do well by adopting a strategy that offers lower-cost tiers. This approach is designed to drive rapid user acquisition while still generating revenue. Here’s how it works:

• By pricing at the lower end of what customers are willing to pay, you maximize market share and reduce barriers for new users. (See Price to Scale, p. 91–93.)

• Lower-cost tiers can act as a gateway, attracting a broad set of users who might later migrate to higher-value plans or drive word-of-mouth, aiding long-term revenue growth.

• You can further segment the market with models like Good-Better-Best packaging, allowing you to capture different customer segments. This modular approach helps you meet varying needs without compromising on revenue generation.

In summary, leveraging a lower-cost entry plan balanced with tiered offerings is an effective way to attract early users and support revenue—in line with the strategies outlined in Price to Scale. This balanced approach not only builds a user base quickly but also sets the stage for scalable, incremental revenue growth over time.