The Power of Pricing and Community: Lessons from Sunsama and Pinterest

The Power of Pricing and Community: Lessons from Sunsama and Pinterest

Introduction:
Pricing and community are two crucial elements that can make or break a digital product's success. In this article, we will explore the importance of pricing based on value created, the downsides of free forever plans, and the significance of building a strong community. Drawing insights from Sunsama's pricing manifesto and Pinterest's journey to becoming the web's next big thing, we will uncover actionable advice for businesses aiming to thrive in today's competitive market.

Pricing Based on Value Created:
Sunsama's pricing manifesto highlights the need for pricing strategies that align with the value a product brings to its users. The traditional approach of charging a one-time fee may not be sustainable in the long run, as it fails to keep customers committed to the product. Instead, a subscription-based model, like the one employed by Sunsama, encourages long-term commitment and enables continuous improvement of the product. By charging for their service, Sunsama ensures that their only incentive is to provide value to customers who genuinely love using their product.

Avoiding the Pitfalls of Free Forever Plans:
While free forever plans may seem appealing for attracting users, they often create bad incentives and can lead to unsustainable business models. Digital products that rely on free forever plans might resort to selling customer data or eventually shutting down. Moreover, users on free plans may have minimal commitment and provide less valuable feedback, diluting the product's quality. Higher prices not only set higher expectations but also attract customers who are willing to invest in a product, leading to a higher quality offering.

Building a Strong Community:
Pinterest's CEO, Ben Silbermann, emphasizes the importance of being close to people who inspire you. The power of community played a significant role in Pinterest's success. Ben's collaboration with his college friend, Paul Sciarra, was a driving force that propelled them forward. By staying connected and accountable to each other, they were able to navigate the challenges they faced. Additionally, the support and engagement of the Pinterest community played a crucial role in the platform's growth.

Creating Unexpected Value:
Pinterest's journey is a testament to the idea that a product can evolve beyond its initial purpose. Ben's childhood bug collection sparked the idea for a platform where people could curate and express their interests. Pinterest's unique grid layout, designed by Evan, became a defining feature that set it apart from other platforms. The company's realization that users were utilizing Pinterest in unexpected ways, such as creating boards like "Things That Look Like The Deathstar," opened up new possibilities and drove further growth.

Actionable Advice:

1. Price your product based on the value it creates for customers. Higher prices not only set higher expectations but also attract committed customers who will provide valuable feedback and contribute to the product's success.
2. Build a strong community around your product. Stay connected with like-minded individuals who inspire you and hold you accountable. Encourage user engagement and listen to their feedback to continuously improve your offering.
3. Be open to unexpected uses of your product. Pay attention to how users interact with your platform and adapt accordingly. Embrace creativity and find ways to provide even more value to your users.

Conclusion:
In the ever-evolving digital landscape, pricing strategies and community-building are essential for the success of any product. By pricing based on value created, avoiding the pitfalls of free forever plans, and fostering a strong community, businesses can position themselves for sustainable growth and provide exceptional value to their customers. The lessons learned from Sunsama and Pinterest highlight the importance of prioritizing customer satisfaction, maintaining a commitment to continuous improvement, and embracing unexpected opportunities.