Strategies for Long-Term Partnerships Using Pricing Tiers

Selling to ENT without changing your pricing model is like showing up to a black-tie event in flip flops. MM pricing models don’t survive in enterprise sales. Why? Because selling 1,000 licenses to an enterprise isn’t 20x harder than selling 50 - but if you don’t adjust your pricing strategy, it will be 20x more painful. Enterprise buyers don’t think in per user terms. They think in budgets, forecasts, and cost centers. They want predictability, not a CPQ nightmare where they’re adjusting seat counts every quarter. If you’re moving upmarket, here’s how to avoid looking like a tourist at the grown-ups’ table: 1. Kill per-user pricing for large accounts. Enterprise CFOs see per-user models as a ticking time bomb...every new hire adds cost. Instead, sell in committed tiers, annual volume contracts, or all-you-can-eat licenses. - Instead of “$50 per user, per month,” structure it as, “$X for up to 1,000 users.” - Price for usage, not headcount - think storage, API calls, transactions, etc. 2. Enterprise doesn’t “expand naturally.” Build in expansion from day one. For MM, you can land small and grow. Enterprise doesn’t work that way. - Ramp pricing: Year 1 at 60%, Year 2 at 80%, Year 3 at 100%. Predictable growth, no CFO freak-outs. - Auto-expansion clauses: If usage exceeds X%, licenses auto-scale. Protects you from procurement pulling a “we’ll just add seats later” stunt. 3. Enterprise buyers expect to “win.” Give them a win - without losing. These buyers are trained to negotiate. They want a lower per-unit cost, but they’ll commit bigger dollars to get it. - Introduce an ENT Rate...lower per-unit cost, but higher minimum commit. CFOs love “efficiency,” and you get more ARR locked in. - Structure custom packaging that makes them feel special. Limited access to beta features, priority support, or bundled services. Want to win in enterprise? Stop selling like an SMB rep. Price for scale, control the expansion, and let procurement “win” on terms that make your CFO smile.

A health tech client came to me with a pricing problem. They were charging $50K annually per hospital but revenue was stuck at $2M with 40 customers. 18 months later, they hit $7.2M ARR with the same customer base. The secret wasn't just changing the pricing model - it was proving undeniable value first. We implemented five low-cost, high-impact changes that transformed how customers experienced the product: 1. Comprehensive staff training programs (clinical + administrative teams) 2. We assigned dedicated success managers for white-glove onboarding and ongoing optimization. 3. Monthly benchmark reports showed each hospital exactly how they compared to peers. 4. Quarterly business reviews brought C-suite recommendations directly to decision makers. 5. And 24/7 support with sub-2-hour response times made them feel truly supported. Once customers were seeing measurable results and feeling the premium experience, we aligned our pricing to the value we were creating. Then We Restructured Pricing: 🚨 Old Model: Fixed $50K fee (seen as cost center) 📈 New Model: Outcome-based tiers 1. Foundation: $30K base + 15% of documented savings 2. Growth: $40K base + 20% of savings + performance bonuses 3. Partnership: $50K base + 25% of savings + revenue share The psychology shift was everything: customers stopped asking "What does this cost?" and started asking "How much are we making together?" The results: ✅ Average contract value: $50K → $180K ✅Customer lifetime value increased 340% ✅ Churn dropped to 3% (customers making money don't leave) The lesson? Don't lead with price - lead with proof. When customers can see and measure the value you're creating, they'll gladly pay for more of it. Ready to turn your pricing from a necessary evil into a competitive advantage? Let's talk.

If all you’re selling are newsletter ads, you’re leaving money on the table and racing toward commoditization. Here’s what the top media businesses do instead: They become marketing partners. With ad spots, you’re competing on price with other publishers/platforms like Google and Meta. Your ads become a commodity, forcing you to accept lower rates just to fill inventory. And trust me, that’s a race you can’t win. That’s why you need to position yourself as a marketing partner: - Use ‘partnership’ language: When you meet with brands, talk about partnerships and sponsorships, not advertising. - Lead with audience value: Instead of ad spots and traffic, emphasize your audience’s unique characteristics and engagement. - Think like an agency: Think of yourself as a marketing agency that also happens to have direct access to a valuable audience. That way, brands are buying your expertise and your audience — which are worth a lot more than ads and traffic. Essentially, you need to build a value ladder and move clients up the ladder to maximize lifetime value. As your clients spend more and work with you longer, they get more value. A simple way to do this is to create partnership packages: 1) Test package (entry point) Minimal investment that still drives results, say: - 3–5 primary newsletter ads - 3 newsletter ads + 3 podcast ads - 3 newsletter ads + 2 social promotions Keep this one simple and focused on quick wins. 2) Quarterly partnership (mid-tier) A more comprehensive partnership, designed to maximize growth over a 3-month period: - 4–6 weekly newsletter ads - Lead magnet creation and promotion - Sponsored newsletters or advertorial blog post - 2 dedicated emails to targeted segments of your list - Webinar (content co-creation, registrations, live hosting) 3) Flagship annual partnership (premium) Your highest-value offering, limited to 4–5 partners a year: - 12–25 weekly newsletter placements - Dedicated account management and reporting - Multiple webinars or lead generation campaigns - Custom content creation across multiple channels A client who commits to an annual partnership is typically worth 20–50× more than one who buys a single primary ad. Plus, these partnerships are far less vulnerable to pricing pressure. So stop selling ads and start building partnerships. The future belongs to creators and publishers who become marketing partners — not ad inventory sellers. By developing partnership packages with a value ladder like I showed you above, you’ll: - Command premium rates. - Build long-term relationships with advertisers. - Get consistent revenue and profit growth long term. Good luck!

You don’t need 10 offers. You need 3 levels of support that nonprofits can actually say yes to. Here’s what we teach: 1. Starter Offer A light-touch way for orgs to work with you. Examples: 90-minute strategy session, quick audit + action plan Best for: orgs testing the waters or needing clarity fast. 2. Core Offer Your main offer—where you do deeper work over a longer stretch of time. Examples: Multi-week training series, full project delivery (e.g., fundraising campaign, annual report design) Best for: orgs with clear needs who want a partner, not just a one-off session. 3. Premium Offer High-touch, done-for-you or done-with-you support. Examples: Fractional leadership, full systems buildout (CRM, comms, strategy) Best for: orgs ready to invest in long-term transformation. Each tier is about depth of support—not pricing or deliverables. Start with three. Stay focused. Let your services grow with your clarity.

In 2024, we took a radically different approach that drove exceptional net revenue retention (NRR), with all customers renewing and expanding within their first year. Most SaaS companies claim they have a land and expand strategy. But let's be honest—many are just rushing to close initial deals and figuring out expansion later. I’ve seen (and done) this myself as an IC. Here are 3 things we're doing differently to maintain profitability in 2025: (1) Intentional Deal Architecture from Day One We've abandoned the "close now, figure it out later" mentality. Instead, we architect comprehensive deals upfront that map to our customers' growth journey: -Set platform pricing with included user counts -Pre-negotiate expansion user pricing -Define integration pricing tiers -Document future use case pricing This means when a customer starts with Gmail and Salesforce integrations, they already know exactly what adding Microsoft Dynamics or Tableau will cost. No surprises, no painful negotiations – just seamless expansion. (2) Zero Handoffs, Total Accountability. We've eliminated the traditional sales-to-CS handoff that creates gaps in customer experience. The same team that closes your deal stays involved in deployment and ongoing success. This isn't just feel-good stuff – it's practical: -Sales maintains strategic relationships -We deeply understand use cases -We spot expansion opportunities naturally -Early renewal conversations happen organically The result? We're not just vendors – we become strategic advisors helping shape our customers' trial and demo strategies (aka every CRO’s dream state.) (3) Aligned Incentives Drive Better Outcomes Here's something radical: our reps earn the same commission on expansion deals as new business. Why? Because expansion isn't an afterthought – it's core to our strategy. When you remove the artificial divide between new and expansion revenue, teams naturally focus on long-term customer success. 🤙 The Impact Yes, this approach requires more upfront work. You'll spend more time on initial deals. Your sales cycle might lengthen. But the results speak for themselves: >100% customer renewal rate >Every renewal includes expansion >Most customers expand license counts >We're seeing early renewals with expansion The old way of landing deals at all costs then scrambling to expand later is done. Today's market demands intentional, strategic deal architecture that sets both you and your customers up for long-term success. It's time to stop talking about land and expansion and start designing for it from day one.