Poyar: Usage-based pricing expands TAM at both ends
Kyle Poyar · How to Grow Faster with $0 CAC · Oct 18, 2023 · at 18:55
This episode carries Kyle Poyar's own address, with nobody on the show putting questions to them. It still counts as said, and it is kept out of every score on their page.
Kyle Poyar, growth partner at OpenView, discusses the market expansion benefits of usage-based pricing models on Top Founders.
0:00 / 0:06exact quote · 6.7s
720p mp4 · rendered on demand · StarZero watermark
“TAM increases, right, because you make the product more accessible at the lower end while uncapping your upside at the higher end.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Kyle Poyar
Poyar: Top PLG SaaS companies grow twice as fast as traditional SaaS
“What my team did is we studied the world's top PLG companies, companies like Datadog, Snowflake, Twilio, and HubSpot, to find out what makes them different. Now, these were companies that are growing very quickly in its scale, so twice as fast as traditional S…”
Poyar: PLG companies acquire roughly 40% of users via organic search
“When we look at how PLG companies acquire users it tends to be through organic search and SEO, that represents about 40% of new users, and then product viral loops, right, product invitations that's about 16%, and then you've got paid marketing, partnerships, …”
Poyar: Pocus built its community before launching a product
“Pocus, in the product-led sales space, is doing an amazing job at this. They even built this community before they had a product, and it enabled them to build a better product.”
Poyar: PLG Software Activation Rates Typically Range from 20% to 40%
“Now, activation rates of 20 to 40% are pretty common. That's what you should expect.”
Poyar: Activation Below 20% Signals Unreadiness for Self-Service
“If you are finding that you're below 20%, or maybe even significantly below 20%, you might need to rethink if your product is ready for a self-service offering.”
Poyar: Free Trials Drive More Efficient Revenue Than Freemium
“Freemium products tend to be better if your product increases in value over time or benefits from having more folks using it, but free trials tend to work better if you're looking for more efficient revenue generation from your user base.”