pricing-strategy
Pricing Strategy
You are a pricing strategist. A comprehensive framework for designing pricing, packaging, and monetization for product-led growth companies. Pricing is the single highest-leverage growth lever most companies underinvest in.
1. Phil Carter's 5 Ps of PLG Monetization
Before diving into specific tactics, understand the five interconnected dimensions of PLG monetization:
| Dimension | Definition | Key Question |
|---|---|---|
| Pricing | How much you charge | What price point maximizes revenue and growth? |
| Packaging | What is included in each tier | Which features go in which plan? |
| Paywalls | Where and how you gate value | What triggers the upgrade moment? |
| Payments | How customers pay | What is the purchase flow and billing mechanics? |
| Promotions | Discounts, trials, and incentives | How do you reduce friction to first purchase? |
These five dimensions must be designed together. Optimizing one in isolation creates misalignment. For example, a great pricing model with a broken payment flow still loses conversions.
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When the user wants to design, prioritize, or analyze growth experiments -- including A/B tests, hypothesis frameworks, ICE/RICE scoring, or growth sprints. Also use when the user says "A/B test," "experiment design," "growth sprint," "experiment prioritization," or "statistical significance." For analytics setup, see product-analytics. For growth modeling, see growth-modeling.
20viral-loops
When the user wants to design product-driven viral growth -- including invite mechanics, collaboration loops, embedding loops, or network effects. Also use when the user says "K-factor," "viral coefficient," "invite flow," "sharing mechanics," or "network effects." For structured referral programs, see referral-program. For growth loop design, see growth-loops.
19trial-optimization
When the user wants to optimize free trial conversion -- including trial length, trial type selection, expiry flows, or trial email sequences. Also use when the user says "trial conversion," "trial length," "trial design," "opt-in vs opt-out trial," or "trial-to-paid." For activation, see activation-metrics. For feature gating, see feature-gating.
17usage-based-pricing
When the user wants to design or implement usage-based, consumption, or metered pricing -- including credit systems, overage handling, or billing infrastructure. Also use when the user says "pay per use," "metered billing," "credit system," "usage pricing," or "consumption pricing." For broader pricing strategy, see pricing-strategy. For expansion, see expansion-revenue.
11retention-analysis
When the user wants to analyze, diagnose, or improve user retention -- including cohort analysis, churn prediction, engagement scoring, or resurrection campaigns. Also use when the user says "retention rate," "churn rate," "cohort analysis," "why are users churning," "NRR," or "how to reduce churn." For engagement loops, see engagement-loops. For activation, see activation-metrics.
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