YC
Turning Your Users Into Paying Customers
@ Y Combinator
06/02/22
Takeaways
YC
Y Combinator Cast
06/02/22
@ Y Combinator
The best feedback about your product comes in the three seconds after you tell users the price.
BF
Brad Flora
06/02/22
@ Y Combinator
Startups often refuse to charge their users, which is a common issue we see repeatedly.
MS
Michael Seibel
06/02/22
@ Y Combinator
Founders often prioritize getting feedback over generating revenue, leading them to avoid charging for their product.
MS
Michael Seibel
06/02/22
@ Y Combinator
Perfectionism prevents founders from setting a price, as they fear changing it later will upset customers.
MS
Michael Seibel
06/02/22
@ Y Combinator
Successful startups frequently test their pricing, adjusting it as they learn more about their market.
BF
Brad Flora
06/02/22
@ Y Combinator
You can always grandfather existing users into their current pricing while raising prices for new users.
MS
Michael Seibel
06/02/22
@ Y Combinator
Not charging can signal to potential customers that your product may not be viable, leading to doubts about its reliability.
BF
Brad Flora
06/02/22
@ Y Combinator
Founders often mistakenly believe they have customers based on interest, but without revenue, they can't confirm the viability of their ideas.
YC
Y Combinator Cast
06/02/22
@ Y Combinator
If you're selling free pilots to big companies, you're not proving much about your product's value.
YC
Y Combinator Cast
06/02/22
@ Y Combinator
You learn more from users who pay for your product than from those who use it for free.
YC
Y Combinator Cast
06/02/22
@ Y Combinator
The best feedback about your product often comes right after you tell users the price, based on their immediate reactions.
YC
Y Combinator Cast
06/02/22
@ Y Combinator
In the open core model, companies aim for user adoption of their free software, planning to upsell later to enterprise support.
YC
Y Combinator Cast
06/02/22
@ Y Combinator
The freemium model is effective when there's a clear constraint that users want to overcome, prompting them to pay for upgrades.
YC
Y Combinator Cast
06/02/22
@ Y Combinator
As a founder, you must track whether free users convert to paid users and over what timeframe to ensure your business model is viable.
YC
Y Combinator Cast
06/02/22
@ Y Combinator
It's acceptable to offer a free product if there's a structured plan to monetize it later, such as through freemium or ad-supported models.
YC
Y Combinator Cast
06/02/22
@ Y Combinator
Charging for your product shouldn't come from fear of losing customers; it should be based on understanding its value to users.