I checked out your pricing plans and the way you differentiate plans based on visitors / day jumped out at me since it goes against advice I read recently from the UserVoice team. They used to price based on number of users who can vote but (in their own words)...
"This was a huge failure. It created what I call a success penalty: the more successful you were in activating your users to give you feedback the more expensive the product became. On some level this made sense but since no one knew how to estimate this future usage it just created uncertainty about committing to a product without knowing the future cost of it. It was especially problematic because we were often working with young companies who didn’t know or were very optimistic about their future active user levels (and equally optimistic about what % of them would engage on UserVoice and give them feedback). It put us in the awkward position of tempering a customer’s enthusiasm about their use of our product (aka “There’s no way you’ll have 300K people on your site in 60 days time”). When we removed the usage limits, which were designed to drive upgrades, we actually saw that upgrades increased 33%!"
Link: http://500.co/the-data-behind-purchasing-behavior-at-uservoi...
I'm currently segmenting by visitors/day as it seems to be the only way to separate bands into the different plans based on their popularity and success. It's also directly bound to the costs on my side (more traffic -> more server resources).
I'm happy to hear suggestions on how to make sure a band making tons of money doesn't end up on the smallest plan, as well as costs for infrastructure not bankrupting me. :)
I can’t help thinking that coarsely segregating customers into plans and overly streamlining the sign-up process might not be the optimal choice in your case. Why not just drive everyone to contact sales directly like, for example, landing page for Ellington CMS does[0]?
You can still market a cheap newcomer plan with low specs, limited support and only basic customizability, strongly implying that it’s the choice for young poor bands. Anyone above that is probably better off working with you directly so that you can estimate the costs and price the solution for them individually. Your highest plan is €199/month—would you bill Metallica that much if they come?
[0] http://www.ellingtoncms.com/cms/, a CMS originally built for small-ish newspapers, also where Django framework was born.
Thanks so much for the nice comments. I'm glad my story inspired some of you :)
If you have specific questions about anything or would like some more details about any part of the story, please let me know. I'll happily answer them.
This solves three problems -
1) You won't build something people don't need.
2) You get into touch with people who actually want to use your product and you can steer your idea into a more clear direction.
3) The leads motivate you (as it did with author).
UPDATE: op writes "Fast forward to today: I launched Stage to the public. I’m still embarrassed, because there a lot of things missing and it has some rough edges here and there."
That's the main reason I (and many others) never thought of even launching a landing page for our side-projects (that never get completed). I'm kinda embarrassed, because instead on being happy for what I've done, I feel bad for what I didn't but could have done (if I had put more time and effort, if I was a better designer, etc.).
Several years ago before chromecast et al, I wanted a way to control my rhythmbox music player with my phone, so I built https://play.google.com/store/apps/details?id=app.ruckusdj.c...
Over the course of 2 yrs I sold over 20 copies for $5 a pop...not retirement money but very satisfying :)
A platform that allows you to find other random people at a similar stage in their side project and become 'buddies' and have to have a weekly catchup about your progress. Then you're both sort of accountable to your buddy, or at least have to report to them what you've done!
What are (were?) those those few decisions? Are they generalizable?
I think the advice to set up adwords and an intro page before a product is ready really helps with this. My main issue with such a strategy is that you end up having to admit that the product is still vaporware and the time to launch may be too long. Probably worth having an early alpha ready prior to any marketing blitz.
I think this post helps demonstrate why having a dedicated co-founder or partner can really help ground you when working on projects like these. There will undoubtedly be lulls where you question the project and perhaps your own abilities. Having someone there to remind you of the original vision can really make the difference.
Worst part, i have alpha testers, and damn their patient for a new version, i sometimes wish they would complain to make me get into that 'i gotta get this part updated asap' mood again.
Edit:
Hmm after reading the article, i really need to redo my landing page. Get an option there to get on a mailing list.
That being said, I still really liked this article. Even though I do launch things, I think that there is a more subtle piece I am missing. One thought I've had lately is that I get a lot of satisfaction out of building something and launching it. When the idea initially pops in my head, I ride that feverish wave of emotion throughout the development process. I think if I could spend more time and develop some sort of process or methodology to validate the idea I could take the next step.
I think it's that the thought of "validating the idea" seems less fun than building it and a little murky (as far as I don't have a clear idea about how to do it) so I just skip it and figure the shotgun approach to building products will eventually hit. :)
The current project I'm on is probably the antithesis of this. I wouldn't be able to figure out how to replace anything without rewriting at least 5 other interconnected bits.
So my guess is that some people actually never learn this...
.... Additional VAT charges are added to purchases made by customers from the European Union, except for customers from the European Union, but outside of Germany, who provide a valid VAT ID. Businesses from outside the European Union are not charged with VAT.Thanks for the feedback, though! I'll try to rephrase it without losing the gist of it :)
Good luck with Stage and to everyone else good luck with your longterm bootstrapped projects!
The article is fantastic, thanks.
It would be probably better if pricing scheme is more modular, and pure hosting capacity aspects are priced reasonably.
Additionally option of yearly licenses with hosting on side of a client would be a big plus
Based on my past experience the storage limits are well over the actual needs. It usually only grows when bands have a lot of photos on their website. At the moment I'm implying that a band with a lot of photos has been around for quite some time and is probably also somewhat successful by then, so they'd have to choose a larger plan anyways (because of increased traffic).
Yearly plans is definitely a thing I'm going to add in the future. :)
Start with your value added.
For the extra:
For example, 40GB monthly bandwidth on DigitalOcean currently costs YY, therefore my cost is bandwith cost is XX depending on how much extra (new resources to spin, and people to admin this) is used.
Don't pick a number from the air. Have some bottom line to, first, make sure you're in the black, and second, can re-buff pricing challenges.
Great advice and now I need to get things started again.