Build your Upgrade Path

  • Created : 1st May 2018
  • Last Updated: 31st May 2018

A great way to increase revenue is by selling to existing cusotmers. To do this, your need to guide your customers to upgrade their service with you by giving them a reason to. We also want to direct them towards this, so after a few months of using your product, they've seen the benefits, and now for more money they will receive even greater value; Win - Win.


Limiting usage of product

This is pretty much my business model at Notifia, plans are divided based on usage of the product and how many visitors the customer receives per month.

This is quite simply because the more visitors the client receives, we have to deliver more notifications so expenses for our servers increase.

Once a certain number of visitors per month is reached they will be asked to upgrade to a paid plan. If they don’t Notifia will pause until next month when their usage limit resets.

This works very well as when a user signs up they may be just starting out a blog and claim a free account and Install Notifia. They get the benefits of the product and Notifia helps them start to grow an email list as they build up an audience for their blog. Now as they continue to grow their blog and they receive more and more traffic, chances are they will stick with Notifia and upgrade to a paid plan to keep using the features that have successfully helped them grow their blog to this point.


Delivering premium features

Another great way to prompt users to upgrade is by limiting some of your features to premium accounts.

https://zapier.com/ is an excellent example of this, they also work on a β€œusage based pricing system” but they also offer premium integrations that require a paid account at a specific tier.

The even smarter thing about this, is their premium level apps are for enterprise applications. Meaning they are most likely used by businesses that are selling something.

For example BigCommerce (an eCommerce Platform), AWS EC2, SES, DynamoDB (Enterprise Cloud Platform), LinkedIn Lead Gen From, PayPal, Salesforce are all premium integrations and mostly paid for products so Zapier cleverly assumes these people are willing to pay money for premium apps as they are a business and uses this as an opportunity to increase upgrades.

Also, don’t be afraid to explore what your competitors are doing to create an upgrade path. See if you can improve upon this and implement it into your business.

Good luck!


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