Good alternative to tariff packages

Now almost all the creators of various web services are trying to sell their product on the principle of tariff packages - the more expensive the selected package, the more options and service opportunities it has.

It would seem that this is a good solution for both the client and the developer, since in the tariff packages, each client finds his own optimum price / performance ratio, and the owner of the service thus meets the demand and maximizes profit.

How and why did such a model appear? Probably, similar products and programs were sold at a fixed price before her, and the developers of these products quickly realized that for some this price was obviously high and unacceptable, and for larger customers - small and insignificant, and they could easily pay 10 times more. Yes, and everyone needs different. Someone needs 20-30% of the capacity and capacity, and someone needs 200%. So the developers decided that everyone should get the price according to their needs and developed different offers of the same product with different prices and possibilities.
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So now the model of tariff packages, in general, suits everyone. And therefore, when creating your web service, we also decided to adopt it. They made the starter pack free, and the rest at an increasing price - from $ 5 to $ 50 per month.

While we were all creating, launching and starting to receive the first feedback from customers, a provocative thought came to mind: is this model of monetization really so good? Is there any alternative?

To begin with, we decided to think hard about the traditional pricing model and found the following disadvantages in it:

- It is impossible to build tariff plans so that they fit all perfectly. For example, a client needs almost everything from plan B, but only one function from plan C, but he is not ready to overpay an extra $ 30 a month because of this.

- The client may not need most of the service opportunities at all, but he uses only a few, while paying for everything that is in the necessary package.

- Putting all your possibilities on the client’s head at once, you can confuse him. He will find your service too complicated, cumbersome and incomprehensible and will find something simpler and clearer.

- Often it is not at all clear what a particular plan is. The list of its features is perfectly understandable to you as the creator, but not the client, who first visited your site and who has no idea about the capabilities of the product. Even if you describe them well, the client still needs to test them in order to understand and understand this description.

We thought about how all these problems could be solved while increasing loyalty, conversion, sales and demand for your product. Then we came up with a model of modular tariffs .

Here is its essence : you give free basic functionality of the service and a list of paid modules that can be connected independently of each other, completing your personal tariff. Any connected module can be disconnected at any time if it did not work for something or turned out to be unhelpful.



Such a solution really eliminates all the problems listed above.

- Now there are no customers dissatisfied with tariffs, because everyone forms their own tariff.

- Each client pays a fair price - only for what he currently uses.

- By registering and receiving initially only basic free functionality, the client will not get confused and will not consider your service difficult and cumbersome. He will have time to deal with your basic capabilities, and then move on to the gradual development of the rest.

- Each module can be described in detail and when it is turned on / off, it is immediately clear what it gives and how it works. Therefore, the service as a whole becomes clearer for perception than a two-screen long list of features of the tariff plan, which is extremely difficult to understand.

Of course, it was not easy for us to take and change the whole logic and model of monetization for modules. But it was worth it! We made this change quite recently, but already managed to notice that the attitude of people who first visited our site has increased. Now, when familiarizing with the service, a larger percentage of people go through registration and rate our product higher.



Of course, such a model is not something innovative. It has long been used by various companies, for example, car dealers when selling cars with the options that the client chooses. Owners of web services, too, does not hurt to think about it. Perhaps this method of monetization will be more profitable for both you and your customers.