How to Price a Product When You Have No Direct Competitors
No benchmark. No competitor to undercut. No industry standard to anchor to. Here's the thinking process for pricing in a category you are building alone.
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Every SaaS playbook says recurring revenue is the goal. Here's why I deliberately went the other way, and why it's the product decision I am most confident about.
Every SaaS product I have ever built has launched with a monthly subscription. It is the default model. Investors like it, revenue forecasting is cleaner, and every piece of advice you find about building a software company tells you recurring revenue is the goal.
When I was designing SparkVox, I deliberately chose not to do it that way. Here is the thinking behind that decision.
SparkVox exists to help people post on LinkedIn more consistently. Most of the people it is designed for have tried to build a posting habit before and failed. They have downloaded tools, signed up for services, committed to a schedule, and eventually gone quiet.
A monthly subscription adds a specific kind of pressure to that dynamic. If you are paying twelve or fifteen pounds a month regardless of whether you post, the subscription becomes a source of guilt during quiet periods. You know you should be using it. You are not. The subscription sits in your bank statement as a reminder that you are failing at something you wanted to do.
That guilt does not motivate people to post more. In most cases it accelerates the cancellation. The tool that was supposed to help you becomes associated with the feeling of not helping yourself.
With pay per use, you only pay when you actually create something. There is no bill during the weeks you are heads-down on a product launch or travelling without a routine. When you come back to posting, you come back without any accumulated guilt about what you have not been doing.
This also changes the incentive structure on our side. With a subscription model, the platform earns whether or not you get value. With pay per use, we only earn when you use the product and find it worth using again. That is a much healthier foundation for a product that is supposed to help people build a real habit.
The average founder or senior professional has somewhere between thirty and sixty active software subscriptions at any given time. Project management tools, communication tools, analytics platforms, writing assistants, scheduling apps. Many of them are barely used but persist because cancelling requires a decision, and decisions take energy.
Adding SparkVox to that stack as another monthly line item puts it in competition with everything else for attention and justification. Positioning it as pay per use removes it from that comparison entirely. You are not committing to a recurring cost. You are paying for a specific thing you did today.
The discipline of pay per use is that there is no guaranteed revenue. Every use has to feel worth it. That is uncomfortable from a business planning perspective, but it is exactly the kind of constraint that keeps a product focused on delivering real value rather than optimising for retention metrics.
If SparkVox produces a post you are happy to publish, you will use it again. If it does not, you will not. That is the only feedback loop that matters, and the pricing model keeps it honest.
Most product decisions involve trade-offs where reasonable people would disagree. This one feels clear to me. The people SparkVox is built for do not need another subscription. They need something that costs nothing when life gets in the way, earns their attention when they are ready to post, and charges them fairly for the specific value they got.
Pay per use is not the path of least resistance for a software business. But it is the model that makes the most sense for someone trying to help founders show up on LinkedIn without adding to the weight of things they feel bad about not doing.
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