Balancing the Desire for Full Paying Customers with the Need for Discounting

Great article!

David Cummings on Startups

One of the challenges that arises when working to achieve product / market fit is around charging full price to a new customer vs offering a discount to get a customer that wasn’t going to pay retail. Of course, in an ideal world every customer would pay retail and be a reference. In reality, the personalities and budgets of the people making the buying decisions come into play and there are desirable accounts where a special arrangement is required.

Here are a few thoughts on the balance between full paying customers and discount customers:

  • At the earliest stage, any customer is better than no customer, but the key is that they have to pay something to have some skin in the game (the corollary is that they have to actually use the product as well on a regular basis and not just pay for it)
  • As the product matures and…

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