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Naomi Ionita: belief

12 Jan 2023 Lenny's Podcast How to price your product | Naomi Ionita (Menlo Ventures)

“" Again, going back to the misstep at Evernote, I think there was always a premium plan, but it didn't really bridge into enterprise.”

— Naomi Ionita

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Everything needed to verify it.

Speaker
Naomi Ionita
Attribution
Verified speaker
Claim type
belief
Recorded
12 Jan 2023
Publisher
Lenny's Podcast

Transcript context

…So, just to reinforce that, your general piece of advice is if you're building a B2B product, start charging immediately. Don't give it away for free. At least have some... You could probably give it away for free but make it clear, "We're going to charge you this much soon." How do you think about that? Yeah, I don't think those are mutually exclusive. So, this isn't to say that I don't like freemium models. Evernote was the darling of freemium over a decade ago. So, I'm still a big believer in that. It's more a question of where you put the paywall. How much do you give up for free? And then how do you price and package a paid version of your product? So, freemium is all about getting that top-of-funnel excitement, getting people to build habit formation. You're collapsing time to value. You're building habit formation. You're building all these champions to use your product. But the idea is to shepherd them along into a paid version of your product and to, again, not delay the idea of, "What should our premium features even be? What should that paid plan even look like? " Again, going back to the misstep at Evernote, I think there was always a premium plan, but it didn't really bridge into enterprise. So, we can talk more about that. This is kind of a tangent, I know, because you have these two other pieces of underpricing and setting it and forgetting it. Been talked about, but do you have any advice for deciding what goes into freemium and what-…

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