The Penny Gap
At Better, we are big fans of scalable customer acquisition via product vs brute force.
For this, on most occasions, the product is free.
So as we see scale and true pull from the users and build confidence that we can scale acquisition with good retention to beat our competitors, the very next question to solve is monetization.
In most cases, these companies may delay monetization for a decently long time BUT we often like to experiment with it - try a number of different ideas to understand if we've crossed the value threshold enough for users to pay for a premium feature.
In doing so, we are NOT testing pricing or HOW much they can pay BUT ONLY IF THEY WILL PAY ANYTHING AT ALL.
Will they pay a penny? ...because paying anything is good enough of a signal of deep perceived value as it takes a lot for users to enter their credit card.
That's why - The Penny Gap :)
Try this as you think about monetization well before you think about pricing.
For this, on most occasions, the product is free.
So as we see scale and true pull from the users and build confidence that we can scale acquisition with good retention to beat our competitors, the very next question to solve is monetization.
In most cases, these companies may delay monetization for a decently long time BUT we often like to experiment with it - try a number of different ideas to understand if we've crossed the value threshold enough for users to pay for a premium feature.
In doing so, we are NOT testing pricing or HOW much they can pay BUT ONLY IF THEY WILL PAY ANYTHING AT ALL.
Will they pay a penny? ...because paying anything is good enough of a signal of deep perceived value as it takes a lot for users to enter their credit card.
That's why - The Penny Gap :)
Try this as you think about monetization well before you think about pricing.