Fireside Chat on the State of Monetization
Some takeaways from the session are:
1️⃣ Build things not just for what people want, but for what people are willing to pay for.
2️⃣ Businesses face challenges when setting the right price for their products or services. Striking the right balance between pricing and product-market fit is crucial for long-term success.
3️⃣ It’s important to understand “willingness to pay” as an indicator of value. Businesses can use this metric to gauge what customers truly value and are willing to pay for. By repeatedly asking and learning what customers are willing to pay for, companies can uncover valuable insights that can lead to significant shifts in their business models and pricing strategies.
4️⃣ Tying usage metrics to value rather than just consumption is important. When a business can demonstrate that its product or service usage aligns with delivering value to the customer, it’s more likely to be highly valued by the customer.
5️⃣ People don’t pay for intrinsic value. They pay for the perception of value.