GOOD-BETTER-BEST Framework:
┌─────────────────────────────────────────┐
│ BASIC (Good)                            │
│ Entry point, core features only         │
│ Price anchor, volume driver             │
├─────────────────────────────────────────┤
│ PROFESSIONAL (Better) ← Target tier     │
│ Most popular, best value                │
│ Features most users need                │
├─────────────────────────────────────────┤
│ ENTERPRISE (Best)                       │
│ Premium features, support, SLAs         │
│ High-value customers, custom pricing    │
└─────────────────────────────────────────┘

Typical ratio: 1x : 2.5x : 6x+ pricing

DO:
✓ Offer annual discount (15-20%)
✓ Make cancellation friction-free
✓ Send value reminders (usage emails)
✓ Offer downgrade before cancel
✓ Build expansion revenue paths

DON'T:
✗ Hide pricing
✗ Make cancellation difficult
✗ Surprise users with charges
✗ Neglect failed payment recovery
✗ Ignore inactive subscribers

Free Users (100%)
     │
     ▼
Active Users (40-60%)
     │
     ▼
Engaged Users (10-20%)
     │
     ▼
Conversion Ready (3-5%)
     │
     ▼
Paid Users (2-5%)

Target: 2-5% free-to-paid conversion
Top performers: 10%+

Free tier should:
┌─────────────────────────────────────────┐
│ ✓ Deliver real value (not crippled)     │
│ ✓ Showcase premium features naturally   │
│ ✓ Create habit/dependency               │
│ ✓ Encourage sharing/virality            │
│ ✓ Cost nearly nothing to serve          │
└─────────────────────────────────────────┘

Upgrade triggers:
- Usage limits (storage, API calls)
- Collaboration (team features)
- Advanced features (analytics, exports)
- Support (priority, SLA)
- Integration (API access, SSO)

DO:
✓ Highlight "most popular" option
✓ Show savings for annual plans
✓ Use social proof at each tier
✓ Display price per user/month
✓ List features in value order

DON'T:
✗ Too many tiers (max 4)
✗ Overwhelming feature lists
✗ Hide important limitations
✗ Make comparison difficult

Without decoy:
┌─────────────┬─────────────┐
│ Basic $10   │ Pro $25     │  Most choose Basic
└─────────────┴─────────────┘

With decoy:
┌─────────────┬─────────────┬─────────────┐
│ Basic $10   │ Plus $24    │ Pro $25     │
│ 5 features  │ 8 features  │ 15 features │
└─────────────┴─────────────┴─────────────┘
                              ↑
                    Now Pro looks like best value

COST-BASED:
Price = Costs + Desired Margin

Problem: Ignores what customers will pay
Use when: Commoditized market, thin margins

VALUE-BASED:
Price = Customer's perceived value × capture %

Better because: Captures willingness to pay
Use when: Differentiated product, clear value

Step 1: Understand customer's alternative
        What would they pay without you?

Step 2: Quantify your differentiated value
        How much better/faster/cheaper?

Step 3: Calculate customer's willingness to pay
        What % of value can you capture?

Example:
- Alternative costs customer $1000/month
- Your solution saves 50% ($500/month value)
- Capture 30% of value = $150/month price

Ask potential customers:
1. At what price would it be too expensive?
2. At what price would it be too cheap (suspicious)?
3. At what price would it be getting expensive but still okay?
4. At what price would it be a bargain?

Plot responses to find optimal price range.

Paths to expansion:
┌─────────────────────────────────────────┐
│ UPSELL: Upgrade to higher tier          │
│ CROSS-SELL: Additional products         │
│ ADD-ONS: Premium features à la carte    │
│ SEATS: More users on account            │
│ USAGE: Pay for increased usage          │
└─────────────────────────────────────────┘

Goal: Net Revenue Retention > 100%
Top companies: 120-150% NRR

PROACTIVE MEASURES:
- Track engagement health scores
- Identify at-risk accounts early
- Reach out before renewal
- Offer value consultations
- Build switching costs (integrations)

REACTIVE MEASURES:
- Exit surveys (learn why)
- Pause option vs. cancel
- Downgrade path available
- Win-back campaigns

DUNNING SEQUENCE:
Day 0:  Payment fails → Auto-retry
Day 1:  Email: "Update payment method"
Day 3:  Email: "Action required"
Day 7:  Email: "Service interruption soon"
Day 14: Downgrade to free / pause
Day 30: Account suspension

Recovers 30-50% of failed payments

Consider charging:
┌─────────────────────────────────────────┐
│ SUPPLY SIDE (Sellers/Providers)         │
│ - Transaction fee %                     │
│ - Subscription for tools                │
│ - Promoted listings                     │
├─────────────────────────────────────────┤
│ DEMAND SIDE (Buyers/Users)              │
│ - Service/booking fee                   │
│ - Premium membership                    │
│ - Delivery/convenience fees             │
└─────────────────────────────────────────┘

Subsidize the harder side to acquire.

PRICING FACTORS:
- Company size (seats, revenue)
- Usage volume
- Feature requirements
- Support/SLA needs
- Security/compliance
- Custom integrations

COMMON APPROACHES:
- Per-seat pricing
- Usage-based (API calls, storage)
- Flat platform fee + usage
- Custom enterprise quotes

When to use custom pricing:
- Deal size > $10K ARR
- Complex requirements
- Long sales cycle
- Multiple stakeholders
- Custom implementation

Structure:
Platform fee + Per-seat/usage + Support tier

TIERED PRICING:
1-10 seats:    $50/seat/month
11-50 seats:   $45/seat/month
51-100 seats:  $40/seat/month
100+ seats:    Custom

Or percentage discounts:
Annual prepay: 15-20% off
Multi-year:    25-30% off

MODELS:
- Premium: Pay once, full game
- Free-to-play: Free + IAP (cosmetics, power)
- Battle pass: Seasonal content subscription
- Gacha: Randomized rewards (controversial)

ETHICAL CONSIDERATIONS:
- Avoid pay-to-win
- Disclose odds for random items
- Protect minors
- Cap spending options

┌─────────────────────────────────────────────────┐
│              HEADLINE & SUBHEAD                 │
│        Clear value proposition                  │
├─────────────────────────────────────────────────┤
│   BASIC    │  PROFESSIONAL  │   ENTERPRISE     │
│            │   ★ POPULAR    │                  │
│   $X/mo    │    $X/mo       │   Contact Us     │
│            │                │                  │
│ ✓ Feature  │ ✓ Feature      │ ✓ Feature        │
│ ✓ Feature  │ ✓ Feature      │ ✓ Feature        │
│            │ ✓ Feature      │ ✓ Feature        │
│            │                │ ✓ Feature        │
│            │                │ ✓ Feature        │
│            │                │                  │
│ [Start]    │ [Start Trial]  │ [Contact Sales]  │
├─────────────────────────────────────────────────┤
│              FAQ SECTION                        │
│         Common questions answered               │
├─────────────────────────────────────────────────┤
│              SOCIAL PROOF                       │
│      Logos, testimonials, case studies          │
└─────────────────────────────────────────────────┘

MUST HAVE:
✓ Clear tier comparison
✓ "Most popular" highlight
✓ Annual/monthly toggle
✓ Feature comparison table
✓ FAQ section
✓ Money-back guarantee
✓ Social proof

NICE TO HAVE:
○ Live chat
○ Calculator/estimator
○ Case studies per segment
○ Integration logos

Example adjustments (relative to US):
USA:         100%
UK:          95%
Germany:     90%
Brazil:      50%
India:       30%
Nigeria:     25%

Reduces revenue per user but:
- Increases addressable market
- Reduces piracy in price-sensitive markets
- Builds brand in emerging markets

WHAT TO TEST:
- Price points
- Tier structure
- Feature allocation
- Annual vs. monthly
- Trial length
- Discount strategies

CAUTIONS:
- Legal issues (different prices for same product)
- Customer trust if discovered
- Statistical significance requirements
- Long-term vs. short-term effects

When raising prices:
┌─────────────────────────────────────────┐
│ Option 1: Grandfather existing users    │
│ - Keep their current price forever      │
│ - Or for 12-24 months                   │
├─────────────────────────────────────────┤
│ Option 2: Phase in increases            │
│ - 50% of increase now, 50% in 6 months  │
│ - With advance notice                   │
├─────────────────────────────────────────┤
│ Option 3: Direct increase               │
│ - Give 30-90 days notice                │
│ - Explain value added                   │
└─────────────────────────────────────────┘