3 Easy PLG SaaS Monetization Levers ?? to squeeze more out of your SaaS
After scaring you last week that PLG companies perform lower than Sales-led companies on all metrics...I have a quantum of solace for you today??? (Sign up HERE for the early bird release of the report now!)?
There are some simple ways how you can squeeze more $$$ out of your self-serve, product-led motion!?
From holding your user-generated content hostage, limiting design capabilities, to slapping branding all over your users' content - here are popular PLG monetisation levers that I’m seeing everywhere in SMB B2B SaaS - and how they might backfire:?
1) Holding the creation hostage, aka vendor lock:
I.e. allowing your users to create something in your product (video, presentation, table) but disabling the file download in the free version.?
E.g. Loom - requiring an upgrade before being able to download the video.?
How can it backfire??
When one of our team plan members requested the upgrade, it wanted to upgrade the whole workspace, and on an annual plan. So it would cost us $1,920 for downloading that 5 minute video ??
How to fix it: Make sure that the upgrade can still be per-seat only. Or maybe charge-by-download??
2) Limiting design options in the free plan?
E.g. Canva, Mentimeter.
We all know this trick - if you're on freemium, you get the stripped-down, no frills version of the designs you can make. Wanna change fonts or upload your custom logo? You need to pay up.?
How can it backfire??
When the limitations make the product kinda useless…your users wouldn’t build a habit. I’m a lot more likely to upgrade Canva (in fact, I already have) than Mentimeter.
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How to fix it: You can keep the design options open for e.g. 3 months and only then paywall them - to let your users build a habit.?
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3) Adding branding to the creation
E.g. Gamma, Mentimeter
No one wants to go into an important presentation with a big “made with XYZ” logo…when XYZ is not your company ?? So it's a strong upgrade trigger that SaaS companies can use to push more free users to upgrade.?
How can it backfire??
When you’re asking your user to go from $0 to hundreds on an annual plan when they are just after potentially a one-off presentation. I know SaaS companies hate users that come for a one-off job and cancel - but the reality is that there are, and will be, such users for some products. And they will be immediately put off and look for competitors, like Slido in this case - which offers a nice alternative in the form of a one-off plan for 7 days (when you need the product only for a specific project.) Well done Slido!
How to fix it: Make sure you offer monthly or one-off project pricing for those users that want to remove branding, but won't upgrade for the whole year yet.?
Although looking at Mentimeter’s growth over the last few years - maybe they’re right, and I’m wrong ??
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10 个月Limiting design options on the free plan is an interesting one. Often the main upgrade trigger for PLG. It is for us. Do you have any other data or articles on that? I've always wondered if we should offer at least 1 branded video template to our Free users, but the fear has always been that we limit our main revenue channel. Your idea of time limited is really intriguing.