![]() So your math isn’t really an apples to apples comparison. If you want to stay current (and I don’t know why you wouldn’t since there are still many missing features and bugginess in Sketch combined with how fast the UI/UX world, and the workflows are moving)-that is an additional $69USD per year after the initial year (for an individual). You can continue using the software, but without release updates. It is worth mentioning that a Sketch license (to receive updates) is only valid for a year. In any case, if you are adamantly against subscription software, then Figma probably isn't for you. At least by announcing pricing now, teams who are on the fence due to unknown pricing, can now plan for it. There is still lots of time for them to address some of peoples concerns. I feel your article may be little premature since pricing doesn't go into effect until July. What is your time worth when Sketch is bugging out on you and you are waiting for a fix? The plugin model has its advantages, but I feel like it is hindering the progress of Sketch's native functionality, and some features are pretty weak in Sketch (ex: grids are a good example). Contrast that with Sketch updates-the last few updates have been a disaster (just look at their Twitter replies), so much so that I now skip the updates until the dust settles and they release fixes. I can adapt to either pricing model, but for me it comes down to the features within the app, the workflow, and the development teams commitment to constantly innovating and adding new featuresįollow Figma's release notes page and see how frequent and significant some of the updates have been. You raise valid points, but at least Figma is a true cloud-based solution unlike the Adobe CC model, and leverages that to make the collaboration happen as it would in something like Google Docs and without the headaches of version control in the traditional sense. What were the factors that influenced your decision on the pricing you came up with? Having been at Macromedia during its formative years of Freehand, Dreamweaver, and later building other web-based companies I've seen the impact of decisions like this on the platform (pricing, 3rd party extensions, partner pricing, and channels) increase or diminish the widespread adoption of an otherwise excellent product. These are all strategies that lead to an increasing path to profitability. Netsuite's CFO has written extensively about the rationale to license on yearly basis, lowering CAC (unfortunately negatively impacting conversion a bit) with mid-year add-ons at higher cost versus monthly. And you'll make it feel trivial for a small design shops to add clients as (paid) team members on new projects at a higher per person price point (e.g., $12), increasing your incremental revenue at no cost. ![]() You'll entice existing users of AdobeCC to add to their toolset. Second: you can optimize and increase the revenue over time by being a core tool.īy lowering your price, you'll set a $21 threshhold in MRR and you'll appear competitive against Sketch. ![]() Show your investors that first: you can derive revenue. Adding additional capabilities that you charge for later. In short, you may consider revising that $12 or $15/mo to $7 or $8/mo with at least 3 team members. These other tools are, to some extent, more mature, and provide an excellent extended ecosystem. I see the biggest issue with your new announced pricing as the cost of product either in a MRR assessment or as YRR as not very price-competitive with other tools, such as Sketch plus other online collab/commenting tools (, InVision, Marvel.). You probably don't know your LTV yet, but at this point, you should be able to start honing your CAC and the channels driving the most signups as well as Churn. Insofar as your web application or SaaS business model suggests, you have a few levers to push and pull when trying to make the transition to that altogether important user-paid model. I would also suggest you go back and conduct some multi-variate testing on pricing. I humbly suggest you revisit your pricing for the paid functions. While I don't disagree with your need to start monetizing.
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