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Charge Your Users
Insight from Yinon Ravid
Don’t be shy about charging your users.
Yinon Ravid of Albert almost ran his company into the ground because he missed the most fundamental rule of a business: charging your user.
I know what you’re thinking.
The product or the growth team's job should be determining the customer pricing.
Your job is to make sure the operations run smoothly.
Wrong.
You need to be heavily involved in any decision involving business model changes.
You’re the one in charge of ensuring all the products integrate efficiently with your processes, the customer experience is fantastic and putting the right people in place to scale your company.
So what did Albert learn? He said that he figured out three principles in building a paid product.
1. Bundling. Charge less for the entire service than the total cost of all individual features bought separately elsewhere. This has worked well for Albert.
2. Clear pricing. Customers want to know what a service truly costs them.
3. Onboarding friction. One of the most unintuitive things about charging customers is that the added friction is a good thing. When a customer makes a decision to pay for a service, even if for a free trial, they're committing to investing enough time in the service to find out if they will use it.
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