Comments on: How Being Scrappy Made Grasshopper Profitable Within 2 Months – with Siamak Taghaddos http://mixergy.com/siamak-taghaddos-interview/ Entrepreneurs you respect teach how they did it. Fri, 18 May 2012 17:41:00 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: Paul Spray http://mixergy.com/siamak-taghaddos-interview/comment-page-1/#comment-12297 Paul Spray Thu, 18 Feb 2010 04:40:20 +0000 http://mixergy.com/?p=4233#comment-12297 Siamak - Thanks for the reply, you gave me a lot of good ideas to help us determine our pricing plans! <br><br>I was curious, was there a reason why you don't offer a Free Trial? <br>In the interview you mentioned that in the past you provided some features al a carte but then decided to provide all of your features in all of your plans, but have you considered offering additional power features to your higher priced plans instead of just providing more minutes in the higher plans?<br>Do you have any strategies in place to encourage your $9.95 plan clients to upgrade?<br>And finally have you considered offering an annual subscription at a discount, say $99 a year? We are considering offering annual subscriptions for a discount but we don't want to complicate the registration process.<br><br>By the way, your voice to text feature rocks! Lot better then Google Voice.. Siamak – Thanks for the reply, you gave me a lot of good ideas to help us determine our pricing plans!

I was curious, was there a reason why you don't offer a Free Trial?
In the interview you mentioned that in the past you provided some features al a carte but then decided to provide all of your features in all of your plans, but have you considered offering additional power features to your higher priced plans instead of just providing more minutes in the higher plans?
Do you have any strategies in place to encourage your $9.95 plan clients to upgrade?
And finally have you considered offering an annual subscription at a discount, say $99 a year? We are considering offering annual subscriptions for a discount but we don't want to complicate the registration process.

By the way, your voice to text feature rocks! Lot better then Google Voice..

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By: Paul Spray http://mixergy.com/siamak-taghaddos-interview/comment-page-1/#comment-9827 Paul Spray Wed, 17 Feb 2010 21:40:20 +0000 http://mixergy.com/?p=4233#comment-9827 Siamak - Thanks for the reply, you gave me a lot of good ideas to help us determine our pricing plans! <br><br>I was curious, was there a reason why you don't offer a Free Trial? <br>In the interview you mentioned that in the past you provided some features al a carte but then decided to provide all of your features in all of your plans, but have you considered offering additional power features to your higher priced plans instead of just providing more minutes in the higher plans?<br>Do you have any strategies in place to encourage your $9.95 plan clients to upgrade?<br>And finally have you considered offering an annual subscription at a discount, say $99 a year? We are considering offering annual subscriptions for a discount but we don't want to complicate the registration process.<br><br>By the way, your voice to text feature rocks! Lot better then Google Voice.. Siamak – Thanks for the reply, you gave me a lot of good ideas to help us determine our pricing plans!

I was curious, was there a reason why you don't offer a Free Trial?
In the interview you mentioned that in the past you provided some features al a carte but then decided to provide all of your features in all of your plans, but have you considered offering additional power features to your higher priced plans instead of just providing more minutes in the higher plans?
Do you have any strategies in place to encourage your $9.95 plan clients to upgrade?
And finally have you considered offering an annual subscription at a discount, say $99 a year? We are considering offering annual subscriptions for a discount but we don't want to complicate the registration process.

By the way, your voice to text feature rocks! Lot better then Google Voice..

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By: staghaddos http://mixergy.com/siamak-taghaddos-interview/comment-page-1/#comment-9812 staghaddos Wed, 17 Feb 2010 10:37:55 +0000 http://mixergy.com/?p=4233#comment-9812 Hi Paul, good to hear from a previous customer. <br><br>Customers purchase the lowest plan because it has the lowest risk and we do not offer a free trial or plan. In your case, if $9.95 isn't profitable, then you shouldn't do it. Personally, I could care less about my competitors and how they price because we're leading an industry and targeting a niche segment of small businesses. Your industry is different however. There are lots of providers in your space so you first need to figure out who your market is, what makes you different, and then charge them whatever you think fits. As long as they see the value, they'll sign up for the lowest plan. As to whether or not they'd sign up for the lowest plan at $14.95 or $19.95, yes, they would if we included more minutes. Once a customer as made up their mind to purchase, it all comes down to lowering their risk to trying out your service. Make sure to do a good job with the conversion funnel and making them understand the value they'll receive out of your service.<br><br>The $49 plan is the most popular among our ideal target, which is why we mention that. And it does have an affect, yes. For the number of plans, if you're offering a free plan, then 4 is ideal. All paid, then I like 3 but you can still do 4. 5 is too many options.<br><br>It all comes down to testing. Start with what's ideal and profitable and go from there.<br><br>Here's a good post to start you off: <a href="http://bit.ly/373D1i" rel="nofollow">http://bit.ly/373D1i</a><br><br>Good luck. Hi Paul, good to hear from a previous customer.

Customers purchase the lowest plan because it has the lowest risk and we do not offer a free trial or plan. In your case, if $9.95 isn't profitable, then you shouldn't do it. Personally, I could care less about my competitors and how they price because we're leading an industry and targeting a niche segment of small businesses. Your industry is different however. There are lots of providers in your space so you first need to figure out who your market is, what makes you different, and then charge them whatever you think fits. As long as they see the value, they'll sign up for the lowest plan. As to whether or not they'd sign up for the lowest plan at $14.95 or $19.95, yes, they would if we included more minutes. Once a customer as made up their mind to purchase, it all comes down to lowering their risk to trying out your service. Make sure to do a good job with the conversion funnel and making them understand the value they'll receive out of your service.

The $49 plan is the most popular among our ideal target, which is why we mention that. And it does have an affect, yes. For the number of plans, if you're offering a free plan, then 4 is ideal. All paid, then I like 3 but you can still do 4. 5 is too many options.

It all comes down to testing. Start with what's ideal and profitable and go from there.

Here's a good post to start you off: http://bit.ly/373D1i

Good luck.

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By: Paul Spray http://mixergy.com/siamak-taghaddos-interview/comment-page-1/#comment-9778 Paul Spray Tue, 16 Feb 2010 18:27:47 +0000 http://mixergy.com/?p=4233#comment-9778 Great interview! I got a lot of great ideas from this one.<br><br>Siamak - I was paying close attention to what you we're saying about developing pricing plans and that you priced the plans based on what you would pay for the type of service you offered. This makes a lot of sense!<br><br>We are launching an e-mail marketing service and we are working on coming up with pricing plans for our service. Most of our competitors have a starter plan @ $9.95 per month which is not that profitable for us, so we are planning on pricing our starter package at $19 per month and our high end package at $149 per month. I would like to get your thoughts on offering a $9.95 plan. You mentioned that the majority (60-70%) of your clients sign up for the $9.95 plan. Do you feel you would have lost subscribers if your starter plan was $14.95 or $19.95? I was curious if you tested this? Also do you find many people upgrade from the $9.95 plan to one of your higher packages? Do you have any strategies to encourage upgrades after the signup?<br><br>Your website highlights the $49 plan, as the most popular. Have you found that by promoting the $49 plan as the most popular, that more clients signup for that plan? <br><br>We are considering offering 4-5 plans, but we now thinking of reducing that to 3. What led you to decide to only offer 3 packages?<br><br>By the way, I used your service around 4 years ago, it was great. My partner is signing up for another account for our new company this week.<br><br>Thanks - You and Andrew are great inspiration! Great interview! I got a lot of great ideas from this one.

Siamak – I was paying close attention to what you we're saying about developing pricing plans and that you priced the plans based on what you would pay for the type of service you offered. This makes a lot of sense!

We are launching an e-mail marketing service and we are working on coming up with pricing plans for our service. Most of our competitors have a starter plan @ $9.95 per month which is not that profitable for us, so we are planning on pricing our starter package at $19 per month and our high end package at $149 per month. I would like to get your thoughts on offering a $9.95 plan. You mentioned that the majority (60-70%) of your clients sign up for the $9.95 plan. Do you feel you would have lost subscribers if your starter plan was $14.95 or $19.95? I was curious if you tested this? Also do you find many people upgrade from the $9.95 plan to one of your higher packages? Do you have any strategies to encourage upgrades after the signup?

Your website highlights the $49 plan, as the most popular. Have you found that by promoting the $49 plan as the most popular, that more clients signup for that plan?

We are considering offering 4-5 plans, but we now thinking of reducing that to 3. What led you to decide to only offer 3 packages?

By the way, I used your service around 4 years ago, it was great. My partner is signing up for another account for our new company this week.

Thanks – You and Andrew are great inspiration!

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By: djwulff http://mixergy.com/siamak-taghaddos-interview/comment-page-1/#comment-8689 djwulff Fri, 15 Jan 2010 03:28:03 +0000 http://mixergy.com/?p=4233#comment-8689 I can’t stop watching. I agree w/ another poster, you have replaced TV. <br><br>Two questions:<br>1. How much sleep do the interviewees require? How much do you? Likely a big commonality between energy & ability to create wealth. <br>2. For sites like <a href="http://Grasshopper.com" rel="nofollow">Grasshopper.com</a>, their URL was likely already owned. Any guests have to purchase their URL from a squatter (speculator)? <br><br>You are seriously skilled at your craft. Thank you. <br>P.S. Found you in a post by Mark Suster I can’t stop watching. I agree w/ another poster, you have replaced TV.

Two questions:
1. How much sleep do the interviewees require? How much do you? Likely a big commonality between energy & ability to create wealth.
2. For sites like Grasshopper.com, their URL was likely already owned. Any guests have to purchase their URL from a squatter (speculator)?

You are seriously skilled at your craft. Thank you.
P.S. Found you in a post by Mark Suster

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