Dear all
I am building a product and it is in the final testing stages.
I am currently on the free plan but i am going to get the starter plan to link it to my domain and website.
My plan is like this and i need to know if it is feasable or not:
I am going to link the app to a Payhere subscription.
I am going to collect from the user 4.99 usd monthly for using my app of course after a free trial period.
(Little context: iam building a habit / mood tracker using Glide. Around 14 to 15 pages linked together so it is not a big nor a small app).
I think i am providing value more than these 4.99 usd but iam keeping the price low because it is an MVP . And i dont want to keep it free because i have costs to cover. Now if i got the starter plan and with this price to collect from user. Is it a feasable business?
And if i wanted to upgrade later to pro version how my pricing should be effected?
If anyome can help me or tell me how did you manage to figure out your pricing with a glide plan active + domain and hosting?
Thank you very much
Easiest concept is take app your costs of running it (if its just this app, then $25 per month) and divide by target # of users and see what your break even is.
In your case if youre charging $5, then you only need 5 paying users to break even. On Pro its $99, so youll need 20 paying users
I think you could test your market and let it tell you if your price point is high, low, or just right.
You won’t know until you launch and listen to what the market tells you. I like Joe’s approach of determining break even based on your fixed costs. Be careful not to mistake this for having a business.
How to monetize Glide?
This post of mine is old now, but I think the ideas are still mostly relevant. You are doing nº3.
That’s exactly what my initial calculations were.
20 paid users to break even with the pro plan and 5 paid users for the starters.
I think i am going to need extra if i need to implement make with pay here in order to receive payments.
Sure thing! , If course iterations will be done for both product and pricings after launch in iride to provide the best value In the most valid pricing plan.
I am struggling with 1 point tho
I opened an account in payhere but in order to recive payments i need to start a company with a bank account. I don’t know if there is a workaround. To receive payments.
Can you elaborate?
I cannot speak for your specific situation. In the EU and in Germany more specifically where I live, when one sells a product or a service, one needs to declare this activity and any profits associated with it (in order to submit tax declarations and pay taxes when due).
Setting up the company usually involves incorporating a business and declaring the existence of the entity. In Germany this happens through the tax office (or one can outsource the process). The business owner(s) then set up some sort of money account to make and receive payments like a bank account, Paypal, etc.
Setting up the business doesn’t have to be complicated, the legal structure can be a 1-person limited liability corporation (LLC) or a freelancing business. In Germany these are two different legal structures. In many countries, at least in the EU and as far as I know, this can probably be done online quite easily (possibly for free).
I understand.
actually I am in the UAE . And I already have an established company. I will explore more regarding the pricing and will determine the best ways.
Thx for the support.
I appreciate your view on the cost calculation and it makes a lot of sense at first glance. However, pricing and breakeven calculations are often more nuanced than they initially appear and I think this is even more pronounced with Glide …
While it’s true that with a $5 charge, one needs only 5 users to cover a $25 cost, or 20 users for a $99 cost, this assumes all users are paying. In many situations, especially when starting out, there could be a significant number of unpaid accounts. These free users, while not contributing to revenue, will still consume resources which should be accounted for in costs calculations. Once you have more users than your plan allows, you’ll be paying Glide a fee for each marginal user whether or not the user is paying you.
The key factor to consider here is the conversion rate from free to paid users. If this rate is high enough, then even with numerous free accounts consuming resources and ‘eating into’ the allowance provided by the platform/hosting service (in our case), the app can still be viable.
So while looking at just raw numbers can provide an initial baseline understanding, we must also consider other operational factors like conversion rates to accurately assess viability. I hope this provides some additional insights into how these calculations work
Great input. There are many different business models out there to consider. Some run on a freemium model where you have a free plan and paid plan, where you’re aim is to convert free into paid. Then of course you have paid only with free trials and paid only without trials. Im personally not a fan of freemium as typically they run at a huge loss until they hit market saturation, which takes a lot of time and money. Or its ads based and Glide is not meant for ads.
Easiest thing is to build a product or service that brings a ton of value thats worth paying for . Paid only is the most simplest, but obviously a lot of people are attracted to free as well. All depends on what you think is best for your business.
For paid only, you take all your expenses / target # of users = price per user to break even + net profit margin = charged price.
Ex: $25/month cost / 5 users = $5 cost per user * 50% margin = $7.50 per user. Thats super simple.
Or maybe you dont have a target # of users, but you know how much each user will cost on average.
Say each user consumes about 1000 updates per month. That’s equivalent to $10 in updates. You want 50% margin, thus you gotta charge at least $15 per user. You probably also have fixed costs to consider as well, so gotta tack that on the $10 Updates cost as well. Good luck! A lot of it is just trial and error!
