Product Management :: Product Marketing

17 May, 2021

The huge challenge of Consumption Pricing

Software Pricing Partners pen some excellent thoughts on the merits of consumption pricing as a charging model: It’s Wise to Question the Big Assumption about Consumption Pricing

The key fact is here: 
Perhaps the most important challenge when considering a consumption pricing model is to align the use metric to the value the customer derives from your solution, which can evolve over time.

This is really, REALLY hard to do: there are inevitable edge cases which destroy the cost of the service or value proposition. For example, number of users vs number of active users vs number of concurrent users when users churn frequently. What happens in cyclical businesses or when there are pulses of demand or inactivity and your pricing is based on transactions per month?

Yes, you can squeeze in acceptable use policies that prevent extreme abuse, but customers get (rightly) irritated at the lack of transparency. 

Alternative billing models (eg flat rate pricing / all you can eat) makes it easier to accommodate some of these challenges, but all models have their strengths and limitations. And that's the key conclusion to draw when building pricing models: it isn't easy and ignore fashion!

12 May, 2021

Alternative business models: open-source, crowd funding and tokenisation

At the Cambridge Product Management Network meet-up, Liam Crilly presented the fundamental business routes for open-source project. I talked about the various flavours of crowd-funding. 

From my experiences at, I proposed that open source and crowd funding are prerequisite to tokenised business models. 

I left a question with the audience: If Tim Berners-Lee came to you with the idea of a web server + client browser, would you advise him to open-source or tokenise it?

What do you think?

The slide are available on slideshare