đ¸ 3 Examples of how indie hackers raised their prices and found success
Price is one of the most important aspects of any business. Most indie hackers are terrified of increasing their prices. They worry that they'll scare awayâŚ
Ayush Chaturvedi6 min read
Price is one of the most important aspects of any business.
Most indie hackers are terrified of increasing their prices. They worry that they'll scare away customers or that they won't be able to "get away" with charging more.
But the truth is, pricing too low can actually be more harmful than helpful. It can make your product look inferior, or attract the wrong kind of users.
As an indie hacker, you donât have a sales team at your disposal. If you try to sell a $5/month product you will have to convince 200 people to reach $1000 MRR.
But if you sell a $50/month product, you will only have to convince 20 people to reach $1000 MRR.
Itâs best to start small, and raise prices as you get some validation.
Letâs look at 3 examples of solo founders who found success with premium pricing.
1. Jon Yongfook | Bannerbear
Jon made the classic indie hacker mistake of charging $9 a month of Bannerbear when it started.
But it was hard to reach significant revenue at such a low price point.
You have to convince hundreds of people to buy your product even to reach ramen profitability.
So once he had some users and validation for the product, Jon raised the prices to $49 a month and focused on a niche audience - Marketers and designers who want to produce social media and ad creatives on a daily basis.
Bannerbear automates the mundane part of their jobs, so they wonât mind paying a higher price.
Currently, itâs price ranges from $49 to $299 a month. And itâs doing $36K MRR with 450 paying users.
Jonâs sights are set on the $1M ARR goal. Watch this retrospective video he posted recently:
Read the complete story of Jonâs success:
Living The Indie Hacker Dream | Jon Yongfook
Listen Up! IH â Episode 19 âIf you want to go from 0 to $10K MRR you should divide your time 50:50 between coding and marketingâThatâs Jon Yongfookâs advice for Indie Hackers. Jon is the founder of Bannerbear. Bannerbear is a tool to auto-generate images and videos
Listen Up IH¡ Ayush Chaturvedi
Listen to Jon on the Indie Hackers podcast:
Bannerbear is an open startup, so do check out the numbers behind the scenes: Bannerbear - Open
2. Pieter Levels | Nomadlist
Pieter levels started Nomadlist as a site and community of digital nomads.
He started the community on Slack for free, and had a 1000 people sign up very quickly.
But he started getting spammers inside the community. So he charged a $5 fee.
Pieter kept raising the price to filter out the spammers. This improved the quality of the community and made it worth paying the higher price for.
Today the Nomadlist community has a $100 lifetime cost, and it has 65k+ members.
Pieter followed a similar approach with his other startup: RemoteOK.
Posting a basic job on RemoteOk costs $539.
And the most premium job post with all the features costs $3000+
Today RemoteOK does $76K MRR and Nomadlist does $51K MRR.
He is a great example of how Indie Hackers should approach pricing.
Read Pieter Levelsâ story:
Digital Nomad To Prolific Indie Hacker | Pieter Levels đ§ł
Listen Up! IH â Episode 20 âBe less scared and just do more things!âThatâs Pieter Levels advice for aspiring Indie Hackers. Pieter is the founder of a number of different solo companies, the most notable being nomadlist.com and remoteok.io. As of today, both share a coveted spot
Listen Up IH¡ Ayush Chaturvedi
Listen to Pieter on the Indie Hackers podcast:
3. Nathan Barry | ConvertKit
Email marketing is a crowded domain with new competitors cropping up every week.
Itâs hard to beat the competition in terms of features, or even in terms of pricing. Thatâs why Nathan Barry has built ConvertKit to be an aspirational product.
He wants to beat the competition in terms of quality.
ConvertKit has great user experience and is focused only on creators, not on enterprises.
The largest player in the space Mailchimp is focused on getting enterprise customers. Mailchimpâs lowest plan starts at $10 a month.
ConvertKitâs lowest plan starts at $29 a month.
Nathan believes that when youâre going for the best quality, you shouldnât worry about being a little expensive.
According to itâs open startups page, ConvertKit is doing $2.5 Million MRR and they have 40K customers.
Those are great numbers for a bootstrapped SaaS business.
Read Nathan Barryâs story:
0 To 28M ARR While Building In Publicđ | Nathan Barry
Listen Up! IH â Episode 17 âIt takes way longer than you think, and itâs worth it if you keep going.âThatâs Nathan Barryâs advice for aspiring IndieHackers. Nathan is the founder of ConvertKit â an email marketing solution for indie creators. As of today, ConvertKit makes **$28.3M
Listen Up IH¡ Ayush Chaturvedi
Listen to Nathan Barry on the Indie Hackers podcast:
When weâre starting out, it can feel hard to charge our products high.
And thatâs okay.
But once you have some validation, your best bet is to go niche and charge a premium for your product.
Even if you can find a few customers, your revenue goals will be met quicker.
ICYMI
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