PricingEmerging Pattern
Pivot from usage-based to subscription pricing for predictable revenue and reduced friction
Based on experience from Samuel Abebe with SpeakerSplit.
When to use
When determining how to monetize and capture value
Don't do this
Setting prices based on costs rather than value delivered
2 Founders Who Did This
1
Canvaby Cameron Adams
Pivot from usage-based to subscription when subscription eclipses transactional revenue Evidence: Canva started with $1 premium elements (30% MoM growth) but pivoted to 'Canva for Work' subscription in year 2. Subscription revenue eclipsed element sales within 3 months and became dominant model. Cameron recognized the higher LTV and predictability.
Result:Applied by Cameron Adams at Canva
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ResumeVaker.onlineby Fernando
Started with one-time purchase model then relaunched as SaaS subscription early the next year
Result:Even with high churn, subscription revenue much more predictable than going back to zero each month with one-time purchases
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