Python for Entrepreneurs Transcripts
Chapter: Growth hacking basics
Lecture: Pricing pages

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0:02 When you've got a bunch of prospective customers using your product and engaging with it,
0:05 you'd like to see them move from prospective into actually paying customers.
0:08 So I wanted to go over some non-intuitive parts of pricing pages
0:12 that will help you to think past just the basic design of the page.
0:16 Once again, we'll take a look at a few examples.
0:20 I've used MailChimp as an example throughout many of these videos,
0:23 and their pricing page is also a really great example as well.
0:26 They only have three options here. Now technically MailChimp
0:30 has more of a spectrum from free to really expensive paid accounts,
0:36 but they've made the smart decision
0:39 to keep things really simple on their pricing page.
0:41 On the left, you've got free, which hopefully by the point
0:44 that people are actually looking at the pricing page,
0:47 they are already on the free account, so they know where they sit
0:50 and they are probably considering going up to a paid account.
0:52 And one of the non-intuitive things about the psychology of pricing pages
0:56 is that you want the gaps between pricing plans to be meaningful,
1:01 it does very little if growing business and pro marketer
1:05 were only separated by five dollars per month,
1:07 well that will introduce his hesitation- should they go for the less expensive plan
1:12 or should they go for the more expensive one,
1:14 it's only hypothetically a five dollar a month difference in that example,
1:18 so they may just say I don't know what to pick,
1:20 and they'll close the browser and say I'll decide on it later, and maybe later is never.
1:25 So what you actually see here, is a huge gulf between growing business and pro marketer,
1:30 it makes it really easy to make the decision.
1:34 If you're in a large company, chances are you are just gonna pick the pro marketer,
1:37 you know that it's easier to get that larger plan through your procurement and legal team,
1:41 rather than some tiny little amount that could be put on a credit card each month.
1:45 But if you're running your own business, or just getting started with your startup,
1:48 the growing business plan is probably going to be the one for you.
1:51 So that's the first thing to learn from these pricing pages.
1:55 Make sure that the difference between the pricing plans is distinct enough
2:00 that people don't have to hesitate when trying to decide;
2:03 it should be very clear to them which category do they fall into.
2:07 We've also used Zendesk as an example and there is a slightly different model,
2:10 this one might also fit in yours if you're considering a per seat licensing agreement,
2:15 so for example you multiply each of these plans by a hundred,
2:19 if you had in their terms a hundred agents, while each of these columns
2:23 doesn't look like it's that big of a difference from one to the other,
2:26 when you're considering per seat, it's going to add up very quickly.
2:29 One thing that's great about this page is that it shows you
2:32 when you move from left to right, you get every single thing plus new features on top of it.
2:38 So if you're considering team vs professional,
2:43 you can very quickly see the biggest features that may impact your decision
2:47 whether you should choose one or the other.
2:49 In the worst case scenario a pricing page would make you decide
2:52 which features that you want to mix and match make it too complicated to see,
2:57 well if I upgrade from the 19 dollar a month plan to the 49 dollar a month plan,
3:04 do I actually lose some features?
3:06 This is very clean for deciding what do you need based on the state of your business.
3:09 One thing I don't like about this, but I understand why Zendesk did it,
3:13 because they have many customers across a wide spectrum,
3:18 but in some businesses you really want people to make a decision
3:21 that you are in heavily influencing,
3:24 so for example you want to highlight one of these plans
3:27 the one that is actually most applicable to the vast majority of your audience.
3:32 Dropbox does this with its pricing plan page,
3:35 where it talks about the most popular plan.
3:38 It just highlights this one on the left is the most popular,
3:41 so if you're undecided or you're not deciding for a business,
3:44 you'll just know ok that's the plan that I need to choose.
3:47 Let's take a look at one more example.
3:50 On Swiftype's pricing their amounts ratchet up quickly,
3:53 and they're really pushing people towards the business class.
3:56 Chances are most of their prospective customers
3:58 are going to choose business anyway, and they're trying to catch
4:01 some of the lower and startups with a basic plan,
4:03 and that's why they have it, just in case.
4:06 But really they're trying to push most businesses to choose that
4:09 pretty much 1,000 dollar a month plan.
4:11 When you're designing your own pricing page, you know your own business,
4:14 what is the plan that you would prefer your users to choose?
4:18 If it's a 100 dollars a month, then one way to subtly influence people
4:23 choosing that 100 dollars a month would be to create a 500 dollar a month plan
4:27 with all the same features plus maybe one or two features
4:31 that aren't that useful for the majority of your prospective customers.
4:34 That way they feel like they're getting a really great deal
4:38 with a 100 dollar a month plan, because they're only paying a 100 dollars a month
4:41 versus 500 dollars a month, and they don't need those couple extra features
4:45 that aren't that big of a deal.
4:47 So that's one way you can subtly influence and guide customers
4:50 towards a certain pricing plan that's not only going to be something
4:52 that they can't make an easy decision on, they can just immediately
4:56 put in their credit card or they can decide right there on the spot,
4:58 but also it fits the pricing model that works best for your application and your business.
5:04 If you're just getting started, you may not really be sure about the really large accounts,
5:08 and so that's why a lot of these pricing pages include a custom plan
5:12 with a contact sales button just in case a really large customer is interested
5:17 in some enterprise features that maybe aren't even built out yet,
5:21 but they want to explore that through a direct conversation.
5:25 As we are deciding how to put together your pricing plan,
5:28 and move customers down the funnel from sign up to usage
5:32 to actually paying for your product or service,
5:35 we should take a look at a lot of different pricing plans that are out there,
5:39 see which ones are closest to your business,
5:42 which ones are similar to the business model that you've created.
5:45 One way to see them quickly at a glance is to go to pricingpages.xyz,
5:51 there is a really great list of curated pricing plans,
5:55 that you can scroll through and see
5:58 how many companies out there are positioning their own pricing.
6:02 Those are some examples of growth hacking and ways to market your business,
6:07 so you can start to move customers from awareness
6:10 which is hopefully generated by your content marketing,
6:12 through the evaluation, sign up process,
6:16 getting them using your product and ultimately paying for it.
6:19 So you can start generating some revenue and keep your business self-sustaining.