When to start charging

1 pointmchicote2 comments

Hi I was wondering when is it the right time to start charging for what your startup is selling. I'm particularly interested on startups that are based on a B2B model. Should I start selling right the second I have something working or should I give it for free the first months?

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If you are going to give something away free, make clear the avoided cost. Say something like: "A monthly subscription of WorkBetterFaster is usually $1250, but because you are offering to give us feedback (or helping us work out bugs, or whatever) we are going to give it to you free for a year!"

It also works for steep discounts. Steve Blank would suggest that you ask for some money (maybe 90% off) just to prove that they can and will spend SOMETHING on it. So 2 lessons:

1. Make clear what it would cost otherwise 2. Charge something to show that they person can and would pay.

Never give anything away for free! If people aren't willing to pay for it, your product has no value!

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