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Pricing challenges in PLG | Kyle Poyar
Growth Machines: Combining Product-Led Growth and Sales
Challenges of Shifting to a Product-Led Growth Model Pricing and Packaging
Shifting to a product-led growth model poses challenges related to pricing and packaging. Companies focusing on enterprise sales may struggle with the idea of offering free trials or affordable entry points. The shift requires simplicity and transparency in pricing to attract end-users. Traditional value-based pricing or discretion given to sales for deal pricing may not align well with a product-led growth model. Concerns about cannibalization from existing customers and the fear of downgrades due to transparent pricing are obstacles. Usage-based models are suggested for flexibility and customer growth. Balancing between being generous with freemium offers and avoiding watering down the free version too much is crucial to avoid support burdens with low conversion rates. Striking a balance between attracting high-value customers and avoiding free users who may not convert is essential in the transition to a product-led growth model.
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