I'm curious about this as well and was going to submit this question to HN. I'm debating between charging say per $5 per user or like you say a tiered approach:
$7 - 1
$12 - 5
$22 - 20
$40 - 20
$90 - 50
$150 - 100
On one hand a flat fee per users seems to be the simplest approach where as the tiered system implies a deal with more users.
I'm leaning towards the tiered method. Everyone loves to feel like they are getting a deal. I know I do and when I put myself in the buyers shoes I think this is what I'd like to see.
Yes this does seem to be a popular choice. From a business standpoint, I like that the extra revenue flows in at the front end of the tier.
With this model, how will you do upgrades/downgrades? Would you prorate the portion of the month on the old plan + the prorated portion of the new plan? Then, continue charging on the new plan the following month?
I'm using Spreedly.com as my payment processor. They prorate and either credit or charge the account based on upgrade or downgrading. I've tried my own billing before it was a major pain in the ass.
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I'm curious about this as well and was going to submit this question to HN. I'm debating between charging say per $5 per user or like you say a tiered approach:
$7 - 1
$12 - 5
$22 - 20
$40 - 20
$90 - 50
$150 - 100
On one hand a flat fee per users seems to be the simplest approach where as the tiered system implies a deal with more users.
I'm leaning towards the tiered method. Everyone loves to feel like they are getting a deal. I know I do and when I put myself in the buyers shoes I think this is what I'd like to see.
Yes this does seem to be a popular choice. From a business standpoint, I like that the extra revenue flows in at the front end of the tier.
With this model, how will you do upgrades/downgrades? Would you prorate the portion of the month on the old plan + the prorated portion of the new plan? Then, continue charging on the new plan the following month?
I'm using Spreedly.com as my payment processor. They prorate and either credit or charge the account based on upgrade or downgrading. I've tried my own billing before it was a major pain in the ass.