Building Sustainable Revenue Systems

4.1 Pricing Strategy Framework

Price Point Analysis

Market-Based Pricing:

1. Competitor Analysis
• Low end: $10-29/mo
• Mid-market: $29-99/mo
• Enterprise: $99-299/mo
• Industry average: $49/mo

2. Value Metrics
• User seats
• Usage volume
• Feature access
• Support level

3. Price Positioning
• Below enterprise
• Above basic tools
• Value-based pricing
• Clear upgrade path

Tier Structure

Pricing Tiers:

1. Starter: $29/mo
• Core features
• Single user
• Basic support
• Limited usage

2. Professional: $79/mo
• All features
• 5 users
• Priority support
• Higher limits

3. Business: $199/mo
• Custom features
• Unlimited users
• Premium support
• No limits

Trial Strategy:
• 14-day free trial
• No credit card
• Full feature access
• Guided onboarding

4.2 Revenue Optimization

Acquisition Optimization

CAC Reduction:

1. Channel Optimization
• Organic search
• Content marketing
• Community building
• Referral system

2. Conversion Path
• Landing page: 20% → 25%
• Trial signup: 40% → 50%
• Activation: 60% → 75%
• Paid conversion: 25% → 35%

3. Cost Management
• CAC < 3 months MRR
• Payback period < 6 months
• Marketing ROI > 300%
• Sales efficiency > 1.0

Retention Strategy

Churn Prevention:

1. Early Warning System
• Usage decline
• Support tickets
• Payment issues
• Feature adoption

2. Intervention Points
• Day 1: Welcome call
• Day 7: Feature check
• Day 30: Review call
• Day 90: Expansion talk

3. Recovery Process
• Exit survey
• Win-back campaign
• Feedback loop
• Product improvements

4.3 Billing Systems

Payment Infrastructure

Stripe Integration:

1. Subscription Setup
• Plan configuration
• Trial management
• Proration rules
• Tax handling

2. Payment Processing
• Multiple currencies
• Payment methods
• Failed payment handling
• Refund management

3. Revenue Recovery
• Dunning management
• Card updates
• Retry logic
• Communication flow

Financial Reporting

Revenue Metrics:

1. Core Metrics
• MRR breakdown
• ARR growth
• Churn rate
• Expansion revenue

2. Customer Metrics
• LTV calculation
• CAC ratio
• Payback period
• Revenue per user

3. Business Health
• Gross margins
• Burn rate
• Cash flow
• Growth rate

4.4 Monetization Features

Upsell Framework

Growth Opportunities:

1. Feature-Based
• Premium features
• Advanced analytics
• API access
• White labeling

2. Usage-Based
• Storage limits
• API calls
• User seats
• Transaction volume

3. Service-Based
• Priority support
• Custom setup
• Training sessions
• Consulting hours

Revenue Experiments