An update on the pricing update

When we simplified our pricing, some folks asked if it was such a good deal for customers that we would be losing money as a company. I calculated what the initial revenue hit would be before making the decision. We decided it was worth it to make Premium more appealing. It would pay off in the long run.

I’ll share a couple more details for folks who are curious. Monthly recurring revenue was down about 2% as soon as the change rolled out. As I blogged about, some people who might be paying $15/month would see their cost go down to $10/month. This was in line with expectations.

The old pricing was optimized for people who might want to pay for lots of blogs, but the reality is that almost no one wants to do that. is for normal people, not enterprise customers. The new pricing better fits the customers we want to have. People who have a main personal blog and might want to experiment with an extra blog or two later. People like us!

Now that it has been a couple weeks, I’m even more confident that this change has been great. We’ve already seen more people upgrade to Premium, making up for most of the initial revenue loss. The interface for upgrading and downgrading is much easier than before. Less friction means we can nudge more people to give Premium a try for a month.

There are still a couple lingering glitches with trials and upgrades that I’m working through this week. Overall, couldn’t be happier with the change, and I think customers are happier too.

Manton Reece @manton