Here’s what the founder of Stack Overflow and Trello says about pricing:
“The only business models I want to work on any more have some mass-market component that is absolutely free, and a niche companion product that makes money off of the exhaust fumes of the mass-market component.”
He used that formula for both companies
Give a product away for free. Then earn revenue off 1% of your user base by charging for a premium product.
Why it works
A free quality product can attract an enormous audience, while a large user base provides the marketing and advertising channel that sustains the paid product.
It’s worked for Stack Overflow and Trello—both are leaders in their industries.
Picking the right business model can make or break a company.