Lenny’s Newsletter · Subscriber post · Growth & retention · Pricing & monetization

How today's fastest-growing B2B startups turned their early users into paying customers

Part two in our series on B2B growth strategy

Lenny RachitskyJul 28, 202021 min♥ 18
SourceLenny’s Newsletter
KindSubscriber post
PublishedJul 28, 2020
Readers♥ 18
Originallennysnewsletter.com ↗
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This post examines how fast-growing B2B startups converted their first users into paying customers, grouping them into three early sales motions: bottom-up self-service, bottom-up with inside sales, and outbound founder-led sales. It argues that nearly all of these companies eventually built sales teams, and that pricing and free-tier decisions can be sequenced later rather than launched upfront.

Subscriber post — summary only

01Key takeaways

  • Early B2B growth falls into three motions: bottom-up self-service, bottom-up with inside sales, or outbound sales.
  • Many successful companies launched without paid plans, then used power users to shape what paid tiers should include.
  • Nearly every company studied eventually built a sales team, even those that started bottom-up.
  • Companies often switched sales motions over time, so the initial choice need not be permanent.
  • Per-seat monthly fees were the most common pricing model, though usage, transaction, and flat fees also appeared.
“We initially started without any paid plans. Our thinking was that it'll spread faster if we don't charge.”Dylan Field, CEO · Lenny’s Newsletter

02Frameworks mentioned

Summary and takeaways written by PM Atlas; quotes are short excerpts. © the original author.