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

How today's fastest-growing B2B businesses turned their early users into paying customers – Issue 36

They then worked with their power-users to figure out what the paid plans should be

Lenny RachitskyJul 28, 20208 min
SourceLenny’s Newsletter
KindSubscriber post
PublishedJul 28, 2020
Originallennysnewsletter.com ↗
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The post examines how fast-growing B2B companies converted early free users into paying customers. It maps three early go-to-market strategies (bottom-up self-service, bottom-up with inside sales, and outbound sales) and draws out patterns such as near-universal eventual sales-team building, delaying paid plans to find product-market fit first, and co-designing paid tiers with power users.

Subscriber post — summary only

01Key takeaways

  • Most fast-growing B2B companies eventually built a sales team, even those that started bottom-up.
  • Delaying a paid plan can help nail onboarding and product-market fit before investing in billing.
  • Power users can help define what paid plans should include.
  • A company can shift between sales-led and bottom-up motions over time.
  • Pricing models range from flat fees and per-seat subscriptions to usage-based and transaction fees.
“We initially started without any paid plans.”Dylan Field · Lenny’s Newsletter

02Frameworks mentioned

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