hacker // cto & co-founder of balanced (yc w2011)
… for early customers, even though it doesn’t scale. It’s a great way to learn and to build a brand. But as growth strategy, it inexorably turns into a sales model, which requires a higher price point, around $300/mo.
In this model, an efficient self-service customer funnel, including silky-smooth user onboarding, is crucial. Without this, your CAC (customer acquisition cost) is too high, and your average $25/mo customer doesn’t justify it.