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IndiePage's Clever Pricing Hack
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Startup Spells 🪄
November 04, 2024
IndiePage's Clever Pricing Hack
IndiePage uses a clever pricing hack to get people to pay more.
IndiePage's Clever Pricing Hack
IndiePage's pricing structure offers 2 main options:
A 1-year pass for $25
A lifetime deal for $45
When customers see these options side by side, the lifetime deal at $45 appears more valuable - it's just $20 more for unlimited access.
Rory Sutherland Rolls Royce Quote
While this approach might seem similar to the Decoy Effect, it works differently.
According to Wikipedia, Decoy Effect (or Attraction Effect or Asymmetric Dominance Effect) is the phenomenon whereby consumers will tend to have a specific change in preference between two options when also presented with a third option that is asymmetrically dominated.
Decoy Effect
In short, Decoy Effect uses 3 plans where middle one is used as a decoy.
Midjourney uses a similar strategy to IndiePage within their pricing plan.
Their $10/month plan offers 200 image generations, while the $30/month plan provides unlimited generations.
Midjourney Pricing Plan
Many users select the higher tier, thinking they'll need more than 200 generations. However, some users later realize they didn't need that many images.
I tricked myself into buying the $30/month plan for 3 months before I realized I didn't even use 200 image generations in total.
Notice, how Midjourney didn't convince me but I convinced myself with their option. This is how pricing psychology works.
This little trick single-handedly makes you more money.
Top Tweets of the day
1/
Last month, I managed 5 client projects using Cursor + V0, all while working a full-time job, and I think I’ve finally cracked the formula for efficiency with minimal mistakes.
Here’s everything I’ve learned to make AI work for you. THREAD BELOW x.com/i/web/status/1…
— Prajwal Tomar (@PrajwalTomar_)
2:00 PM • Nov 2, 2024
A single developer can code 5 different SaaS in 1 month with a full-time job.
That should tell you how effective AI is in the right hands.
I've personally built a full-blown app in 10 minutes that someone was willing to pay $250 for with 4-5 prompts. Bolt.new & v0.dev are incredible in the right hands.
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go old skool and do old skool tactics when everyone on the next hot new thing. my cousing works for SaaS company 50% client acquisition is direct mail (30% google, 20% meta). I was shocked. Another guy i know prints of banner ads - supposed to be dead and so on
— Sonny Lowry (@sonny8s)
12:39 PM • Dec 5, 2023
Marketing channels become ineffective due to saturation. If a channel is saturated, only top 1% wins.
Nobody is sending direct mail anymore. You can easily stand out just by the virtue of choosing an underexploited channel.
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A company in Japan gives employees who don't smoke an extra six vacation days every year to make up for cigarette breaks. The company found the new policy gave a lot of employees the push to finally quit smoking.
— Historic Vids (@historyinmemes)
8:28 PM • Nov 2, 2024
Incentives rule the world.
Rabbit Holes
Useful hacks about SEO keywords by Edward Sturm
How we're paying $20 per influencer post by /r/Entrepreneur
Local SEO tip that will 10X your reviews by Darren Shaw
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