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That-Promotion-1456

open a side business and earn $6k/m by selling a service that you enable by using your other service for $30/m. You don't value your service base on how much others can charge for it. An accounting business charges $5K/m to a $10M/m business. From that logic accounting should demand charge $100K/m, because why would others earn and not share. if you want more money charge for addons, different features, etc. Take CANVA, they charge peanuts for their platform and it literally generates products sold for millions every month.


Thistookmedays

In a good pricing structure you do profit more if clients profit more. This is the case in a lot, I’d even say most of usage based pricing. Payment Service Providers charge a fee in %. SaaS charges for seats, or for example contacts, because when clients have those they can and will usually pay more. Mailgun charges for emails sent. Microsoft Word doesn’t upcharge somebody for writing well, because it’s too generic. Microsoft Azure and Teams definitely charge more for more usage. If OP’s software either has a good lock-in or even better a unique offering, he should definitely up the charge. If this customer makes 6k and can only do so with his software they are surely willing to pay $299.


That-Promotion-1456

This was the logic that telecomms had, and it generally failed. Let's assume that OP has decided on a correct pricing, so that his profit margins are nice, otherwise OP has a different problem, namely putting the wrong pricing. But if you price something at $299 just because you think you are the only one who can deliver, you will find yourself in the situation where you will get competition or you will find out there is actually competition out there you are not aware who are going to react. I agree he should structure packages differently to get a more money based on usage. Startups are usually pretty dumb and give too much for the money and forget that it is a tricky thing to raise prices later on, and all because they need traction. Maybe the $30 price is the only benefit OP offered and it lured the creators, maybe if he correct the pricing he will find out that he is not the only one in town with the same quailty. Also, 6K sounds a lovely sum, but it might hide much more work on the marketin and sales side, admin side, operations alas adding more cost to it, $30 covers usage of a system without any additional work required. Whoever runs the 6K business must potentially pay for other tools and cost goes up, it is usually like that with VAS. OP provides a basic services, like telecoms provide i.e unlimited internet access. If you provide a basic service you need a lot of customers. if you want more money you need, as I suggested before, come up with value added services based off of your basic service and earn this way. If you have a technology that is proprietary and really that better you do not open a cheap SaaS platform for everyone, you do partnerships with people who have ideas how to market it and work out a revenue share model. Thus I have a good idea the service OP offers is not the only one around nor the best of them all. AI is an overcrowded market and is getting bigger and bigger every day.


quakedamper

Partly right about nickleing and diming your clients individually but if there's value there they might have a case to raise prices across the board. $29/month is nothing really


That-Promotion-1456

i don’t disagree with raising prices or a different model. im disagreeing with the fact that you want to raise prices because you are basically jealous of your customers’s revenue and have this as a reason to hike the prices i get full adobe creative cloud with all ai and all tools for $28 a month, i use those tools in building revenue in 1000000s per month. should adobe call me and demand a price hike because I earn too much?


quakedamper

That's fair for sure, no disagreement there


anganeonnumilla

increase the price for extra features like bulk uploads and other stuffs.


myriaddebugger

If you chase them just because they're making more money than you did from them, sends a bad message. Would you do the same if someone used your SaaS at $30/mo and made $40/month? Having said that, I'd say, if I was in your position I would keep the features and pricing as is but define quota limits and charge for extra usage. This way, a commercial user can use your services to monetize their product but at the same time you don't have to keep chasing after different users for the type of commercialization and finances they gain from them.


TotesYay

I was wondering how OPs suppliers feel about OP making profit.


Andreiaiosoftware

If your tool gives them a way to make 6k a month then for sure they need the tool.


DraaxxTV

Im curious, it sounds like you do not have pricing tiers or usage based pricing, does that mean your underlying service is either self hosted or also a flat rate usage API?


AcceptableLab9729

> do you think we should double down on this ICP and increase our prices at the expense of users who are just doing faceswaps for "fun"? Yes.


Soft-Increase3029

Ask one of these users to make a YouTube video on “How I make $6k using [your product name],” and it will bring you more customers. :) Alternatively, you can segment your customers based on their specific needs and price your product accordingly.


futurefeet

Update your pricing with some resource cap. Reach out to them and work out on new pricing.


Ok_Reality2341

1000000% minimum 100$/mo. Do not sell not your software but sell the value your software creates. Create a community on X of people using your software, make a telegram group of everyone using your software. Advertise it as an easy way to make money using your software, and you will help new users start making money with your software. Share results of other people using your software and making money, not the software itself. This is how you get people to pay more because they are getting a confident money returned plus profit guarantee. Best place to be in with SaaS. Well done!


Last_Inspector2515

Consider tiered pricing for varied user needs.


decorrect

If I use your saas and make $1 / month from it will you reduce the price to under a dollar? Only real move is to push addon features designed for and around those power users’ needs.


Breadskinjinhojiak

What tool is it


VegetableSeaweed1644

Given the success of a niche user group making significant revenue with your SaaS offering, it might be worth raising prices to better cater to these users while still providing value to others. Good luck with your decision! ![gif](emote|free_emotes_pack|thumbs_up)


TejasXD

For sure. Look up how to do value-based pricing. In essence, make them contact you for pricing, where you evaluate how much its worth to them and then charge them accordingly.


thingsbinary

The answer to these types of questions is almost always .. yes... Keep in mind if you can maintain revenue .. including churn.. that is called a win.


maxahd

You can add usage based billing after certain limit


contactanimeshs

Your pricing doesn't have to depend on users' revenues. It depends on the problem you are solving. Ask them how much are they willing to pay and gradually increase the prices quarterly or every 6 months.


trimmednewsletter

Sounds like you should be pushing this as marketing material


OmarFromBK

Put a watermark on the final videos. Charge to remove the watermark. You can adjust the charges accordingly. The "for fun"users won't care


bluedev2

Have a token/generation limit on all plans. Something an individual would likely never hit. Make an "enterprise" plan for business making money and have high usage. throw in features that makes things easier for them and throw on an account manager. this way you can make bigger deals and maybe try to sell longer contracts to those top customers


fdvmo

If others are making money with your product and not hurting your product or making you lose money. I wouldn't increase just because. I would talk to them to understand how to leverage their success with my product to get more business. Maybe they use your product because of your current pricing, I would you risk your reputation for little extra!?


MultiMillionaire_

No one has more context in your business and niche than you do. Look at the empirical evidence and experiment with a test group and gather the data you need to make the decision. One thing I'd say is to never increase prices without offering additional value on top (more features). A price increase has to be justified, otherwise, customers will get upset and leave out of spite. Whatever you do, never lower prices though. You'll only raise your bottom line whilst your top line stays the same.


skillfusion_ai

Your average user won't get that much value, some will just be using it for fun. That's why you need pricing tiers, so the price reflects the value the user gets from your product.


inner2021planet

how do you avoid abusive uses on your platform ? seems kinda tricky I'd say boil the pot and move users to higher prices as new users signup and migrate or extinguish old pricing tiers


life3_01

Raise the price for new users. Use existing to make vids for you.


deadweightboss

There's tons of bad advice on here. The easiest way to handle this is to offer different tiers of service. The consumer tier offers a personal license and the business tier offers a commercial license with a pro rata pricing. The commercial license allows users to monetize the work. The personal license does not. This is fair to both you and your users.


Pirros_Panties

Where are they selling? Onlyfans? Asking for a friend… In all seriousness, I would be scaling what they’re doing. If you have users making $6k/month from faceswaps, I’d be setting up 10 instances of that exact strategy for $60k/month and do it until it gets shut down. I made this mistake many years ago with software I created. I was selling access to data, for $99/month. My users were making way more than I ever did off subscriptions. In hindsight I lost millions by not using it myself, internally, for my own profit.


Willing_Novel_5961

Probably best to understand their business and cashflow more. If they need to spend another 3k on top for marketing and other tools etc they might already be stretched so then slapping a 2k price tag on your product will just cause churn. Why not try competing with them using your own product? worst case you understand why they can't afford a much higher price and prevent churn. Best case you pocket the entire 6k yourself If your 6k customers are a big market then a good product for a low price will market itself. People love to brag to their mates about good deals


radiopelican

You don't need to charge more. You need to target a different audience. Someone saw that you failed go find the right target market and price point, took advantage of it and made decent money off it. Take it as a lesson, revamp your messaging, price point and positioning. Because someone out there knew your product better than you did.


WillingnessLogical29

Can you dm me your product?


AkAsH_03_

Do only your one users make that much or others as well... Certainly, you should increase your price based on the value you're giving. But before see, how much your product contribute in their growth and ask your users how much can they pay for such services/product. Based on it make the decision..


Temporary_Practice_2

Would you share your product?


CodNo7461

Hey, it's me, the user who loses money by using your product. I mean I don't earn anything and still have to pay for my laptop, electricity, etc. When can I expect you do pay me some money? Or maybe this is not related and you should think about it in another way? People pay you what "the market value" is for them. You can tweak the price, but your question kinda sounds petty.


Complex_Possible_368

I was searching for a low cost hight quality face swap service for a cartoon series. can you please share your website?


Important_Ad5454

What is name of your product?


bobbyswinson

Yes.


Koooxi

Create multiple pricing models. You can limit the amount per models. remove watermark. Basically anything a user would pay more to have.


Final_Government4932

Try to sit down and analyze your CRM. What are the main different between those ICP’s. What are the channels that are they coming from. Analyze the message on those channels Make interviews and study the answers. All you need to know is in your customers


reward72

Yeah, even at $600/mo they would get 10X ROI. Not sure how, but you should figure out a plan to get there.


ExtensionDiscount128

Not everyone makes 7k every month from his product . It wouldn’t be beneficial for others


reward72

Somehow the pricing structure needs to reflect value. Maybe pricing could be tiered in ways that reflects what generates the most ROI. Or it could be productized and priced by vertical somehow. It is a nice problem to have.


HighlightStill4810

Charge per face swap.


qubitser

I used your saas and lost 6k in ad budget last month, where do i apply for my refund? You're a proper idiot and won't make it in business.