Why did simplifying our pricing page drop our signups by 35%?
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We thought switching from usage-based pricing to flat monthly tiers would give our users "predictability." Instead, our signups dropped by nearly 35% in three weeks.
Small teams felt priced out before even testing the product at scale, while heavy users were getting a massive free ride and overloading our support channels. We tried to simplify our pricing page, but we actually destroyed the perceived value for entry-level buyers.
To anyone who has experimented with hybrid monetization models: how do you price for low-friction entry while ensuring heavy usage scales linearly with revenue?
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I'd replay actual small and heavy accounts against a base fee plus included usage and a published overage rate. Show a bill estimate before signup and offer a hard spend cap. If support is the bottleneck, price support access separately rather than expecting usage charges to cover it.