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Ditch linear scaling in favor of a plan model.


Stashed in: biz

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Pricing scaling linearly when customer value scales exponentially is bad:

The above plan segmentation on users immediately triples the price for serious businesses using the service, irrespective of the size of their server fleet.  This is good because serious businesses generate a lot of money no matter how many servers they have.

The rule of thumb: Price according to value, not according to cost.

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