Understanding Pricing Pages
Listen in this week as Ryan Draving helps you understand the differences between a simple pricing model all the way up to a more complex model on a company's pricing page.
00:00:15 - 00:18:23
What's up, everybody? Ryan Draving here, and today I'm going to walk you through the pricing pages of a few great companies and help you to understand how to go from a simple pricing model, if that's what you have, all the way up to maybe a more complex model where you have a wide variety of offerings and audiences and packages.
00:19:10 - 00:39:03
So we'll start off with Slack. As you can imagine, Slack is a pretty simple tool. It's very straightforward and the pricing reflects that. They start right off the bat with a free pricing option. That's always a great way to get people in. There are multiple ways to do freemium to get people in the door and then sort of upgrade them.
00:39:04 - 01:04:23
You can either have free, where in order to get more features, you need to upgrade and in that case, maybe it's free for life, until you need more features or more storage, etc. There's free where it's a limited trial period, right? So maybe it's 14 days or 30 days, that kind of thing. And then in the first scenario, often there's just number of users, right?
01:04:23 - 01:28:21
Maybe it's free for one user. As soon as you want to collaborate, it becomes a pay package. What we have here, though, is again, pretty straightforward. The way that it flows is a waterfall effect from left to right. So as opposed to putting all of the repetition that you'd see where every one of these plans offers a free option, you know, the free checklist items, we're not repeating them.
01:28:21 - 01:51:13
You just get all the benefits of and so waterfalls from left to right that way. But what about identifying the exact package that's right for you? How do you compare these side by side? Well, you can then scroll down a little further or click on Learn More. But you can scroll down further here and you can see a comparison grid. This is a matrix where it's more sophisticated.
01:51:20 - 02:10:06
This is a different type of buyer. Sometimes the buyer is just going to sort of impulsively buy or it might be a buyer who got the high level here and wants to scroll down and really look at the nitty gritty details. Now, you'll notice that in all of these, there is an ability to get more information to really understand it.
02:10:16 - 02:32:16
Remember that you as the marketer, you understand your company, you understand your product. But the prospect doesn't have the same context that you do. So you need to make sure that you're speaking to them in a way that they understand. And a great way to do that without overwhelming the page with a lot of words is to have these sort of tooltip options that pop up for you.
02:33:15 - 02:52:14
Now, if we go to Monday.com, which is a great company as well, they have grown exceptionally well. They have fantastic marketing overall. Let's look at their pricing page. Again, you can reach it right from the top nav because they have such clean, simple pricing. They want people to see this. They want people to realize, I can get this for free.
02:53:11 - 03:12:12
I can also, even if I want to pay for it, it's going to be really cheap. Because they have this low cost pricing per user, they try to get people to see that more quickly. The options they have here are fairly similar like the way that it flows. It waterfalls left to right. You've got your little tooltip options here.
03:12:23 - 03:33:11
And if you want to see the complete features list, instead of cluttering the page with that, I actually prefer how Monday does it. You click to expand and then you see the full page. You'll notice that Monday also does something better than Slack here. They keep that entire sign up, get started, CTA set with you as you go through the page.
03:33:15 - 03:54:01
So all of that is right there for you as you're experiencing. But what if you have a more complex product? What if you have something with more modules, more offerings, different audience segments? So then you have a company like HubSpot. If your company offers a wide range of products that really stand alone as their own individual product,
03:54:13 - 04:15:16
this is a little bit more like your model. HubSpot offers, again, their pricing right at the top of the page. They make it easy to find, and the pricing does feel digestible and reasonable. So you're getting in, you know, you see some plans that are $45 a month. OK, I can go ahead and get started there. But eventually your needs are going to grow,
04:15:20 - 04:38:01
and HubSpot has a variety of ways that they tier up that pricing. So pricing changes based on number of users that you have, the price changes based on the number of contacts in your database, depending on which product you're using. It changes based on how many modules you add on and how many capabilities. So maybe you start with marketing but then you decide, Oh, I want sales, too.
04:38:01 - 05:02:19
I want customer service, too. I want CMS too. Right? So this expands over time. Now, part of the complexity that you're seeing here also encourages you to go ahead and click the chat and reach out. And that's something else they'd love to have because their average value is not $10 a user for five user companies. They're talking thousands of dollars a month on average.
05:02:19 - 05:24:06
Sometimes that's more, sometimes a little less, but it's generally worthwhile for them. Now, one more note here. Even though HubSpot does have this higher end pricing, what you'll see is that they do have a free CRM. So their plan there allows you to get started with a lower number of total contacts and seats. And then you can always expand from there.
05:24:07 - 05:40:11
So that's their way to get people in the door with a free offering that, you know, maybe they take a little loss on in terms of the hosting or the customer service. But at the end of the day, that allows them to get people into this funnel where suddenly they're starting to add on more products and upgrade their CRM as well.
05:41:19 - 06:03:02
Now, I really like how Salesforce does their pricing. They're another company very similar to HubSpot. They are in fact direct competitors and the sort of two giants in the CRM space, but they both offer a wide range of other products. And so Salesforce also has this challenge. How do you position so many complex offerings in a way that is still digestible and easy, right?
06:03:12 - 06:29:16
So with Salesforce, we actually have to scroll down to the bottom of the page and we find the product pricing here in the footer. Now, this looks easy, right? This is more digestible. Is this easier to understand before I'm trying to digest all the prices and all of the offerings and all the feature sets? I start off somewhere that's a little bit easier to breathe in and I say, Oh, I am a small business, or I'm looking for just service, or I'm looking for just marketing, right?
06:29:16 - 06:50:09
And then you get down to the page that's relevant to you. I think that's a much better experience than what HubSpot is offering there. You'll notice that you're still able to get to all of those other offerings right from this page. So if you have a fairly simple product, that's really primarily one product offering. I'd recommend taking a look at Monday.com
06:50:21 - 07:06:08
They're a great example to work off of. If you have a more complex product, Salesforce.com is a good one to look at and see how they go about things. You'll find your own solution but these are great places to start. I'm Ryan Draving with The Moving Company and I'll talk to you soon.
