PRICING & PACKAGING More on PRICING & PACKAGING

Pricing & Packaging

The same monetization strategies that drive adoption in the earlier stages won’t necessarily make you profitable in the later stages. Tips on how to deliver the right value to the right customers, price to create value, and more.

Usage-based pricing

More founders are turning to usage-based pricing to better align cost and value. Tips for implementing it successfully, from rethinking the role of your sales team and compensation to helping customers better predict their usage.

Usage-Based Pricing Is Popular, But Is It Right For You? Our Rule of Thumb

Tugce Erten and Mark Regan

If your SaaS product powers your customers’ products or internal systems, usage-based pricing could help you capture the revenue from those workloads.

Overages: The Overlooked Problem in Usage-based Pricing (and How to Fix It)

Joe Morrissey

Overages penalize your customers for buying more. You could generate more revenue by instead tiering pricing for how your customers want to consume.

How Do I Build a Usage-based Sales Compensation Plan?

Mark Regan and Joe Morrissey

1. Identify where your reps add incremental value. 2. Pick the top 2 most impactful activities. 3. Choose the right levers to incentivize those activities.

Customers Want Predictability in Usage-based Pricing. Here’s How to Help Them Get It.

Tugce Erten and Mark Regan

A menu of options across pricing, sales, product, and customer support to visit—and revisit—as you revise your pricing structures.

Predicting Revenue in Usage-based Pricing

Mark Regan, Travis Ferber, and Dan Burrill

Finding predictable revenue in a flexible usage-based pricing model can be difficult. Frameworks for how to make it easier.

Latest from Growth

The latest from our team on pricing, packaging, and monetization strategies.

Pricing and Packaging Your B2B or Prosumer Generative AI Feature

Sarah Wang, Tugce Erten, and Alex Immerman

GenAI will deliver massive value to companies, but it can be difficult to account for its costs. How we’re thinking about monetizing new genAI features.

Why Pricing and Packaging Matters More When You’re Launching Your Second Product

Tugce Erten

Knowing how pricing fundamentals shift before a new product launch can help you capture the value those products create more quickly.

From the archives

Best practices for monetizing your business across GTM motions, sectors, and verticals—from those who have scaled companies themselves.

Pricing, Pricing, Pricing

Mark Cranney, Martin Casado, and Scott Kupor

Why founders should price aggressively—especially in pre-chasm businesses—and how to raise prices when the time is right.

Bottom Up Pricing & Packaging: Let the User Journey Be Your Guide

Jennifer Li and Martin Casado

In PLG, mapping the user journey can help you better identify, differentiate, and price your products.

a16z Podcast: Pricing Free

Mark Cranney, Martin Casado, and Peter Levine

How to draw the line between free and paid offerings. Plus, how to balance community and “spreading the religion” in open source.

What Now: Freemium or Paid?

Peter Levine

A thought experiment evaluating the tradeoffs of freemium and paid offerings.

The Price Isn’t Right: 3 Pricing and Packaging Pitfalls to Avoid

Tugce Erten

Red flags that your monetization strategy isn’t working, and how to approach it.

Aligning Product and GTM Teams with Better Segmentation

Zeya Yang and Baker Shogry

Proper segmentation helps you deliver the right value to the right customers. The happier each segment, the stickier the customers.

How to Build A Winning Paid Membership Program

Connie Chan

Paid memberships might offer consumer companies an alternative to advertising revenue. How to build a program that turns users into super-users.

The B2B Fintech Pricing Journey

Marc Andrusko and Seema Amble

How to evolve your early-stage B2B fintech pricing strategy to maximize value capture when you’re at scale.

6 questions every founder should ask about pricing strategy

Jason Rosenthal and Maggie Hsu

Key questions to ask when pricing a new product in a new market. From a16z’s Crypto Startup School, but broadly applicable.

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