Lenny Distilled

Monetization beats acquisition 4:1

Growth → Monetization & Pricing

For a 1% improvement on acquisition, retention, and monetization, the impact with an improvement on monetization was 4X that of acquisition.

Naomi IonitaHow to price your product
Supporting

Roughly half of companies that instituted a pricing change saw at least a 25% increase in ARR.

Naomi IonitaHow to price your product
Supporting

The winners in AI will need to master monetization from day one. If you're bringing a lot of value to the table and you start at training your customers to expect $20 a month and you anchored yourself on a low price point, you're in trouble.

Madhavan RamanujamPricing your AI product: Lessons from 400+ companies and 50 unicorns
Supporting

Pricing and willingness to pay is such a hard conversation and lots of startups don't do this early enough in their company journey. Likely a side effect of zero interest rates where investors were happy funding GitHub stars and usage and companies never thought about how am I going to make revenue or make money, which is it's important.

Julia SchottensteinM&A, competition, pricing, and investing