Anand: Platform fees are flawed pricing mechanisms that procurement teams challenge
Varun Anand · Clay's unconventional path to $1.25B: Rethinking GTM, pricing, and enterprise sales | Varun Anand · Jan 23, 2025 · at 33:25
Varun Anand is the co-founder of Clay. He explains why charging a separate platform fee failed when moving upmarket into enterprise sales.
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“First, platform fees are inherently challenged. They are not great pricing mechanisms, and the reason for this is, first, it doesn't scale. After the first year, you want to keep raising the price because you want to, you know, you want to create more margin. It's very hard to increase a platform fee. Procurement teams will eat it apart because it's like, why are you charging me this amount of money for this nebulous set of services?”
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