Price Like PostHog!

Hi, I'm Ryan, a developer from Schematic, and I want to talk about one of the coolest dev tools companies around right now, and that's PostHog, and specifically how PostHog thinks about pricing. So PostHog thinks about pricing differently than most people, and I think it's really cool. Their like core 3 pricing plans look a little different than the traditional good, better, best, because they're actually free, free, and then quite expensive. But the way they think about this it is different and it has a lot to teach us. So they start with a totally free plan, no credit card required, uh, and they actually give away a fair amount of stuff for free. But then if you want to upgrade, you're actually upgrading to an also free plan, which is a little weird, but it does two things. One, they take a credit card from you, and so while there's a lot included in their middle free plan, if you go over that, they now have a credit card and they can start to charge you overages for, you know, users that are growing, scaling companies. They may not be ready for the premium features, but definitely want some features. But the other thing it gives them is it gives them basically like a higher intent to buy, um, or, you know, at least intent to use, which— so even though it might be a free tier, you've given them a credit card, you've said, you know, we're a real business, you know, we're here because we want to use your product. And then that allows them to give you some additional features like higher-level support. On the free tier, it's only community support, but in the middle tier, it's actually Slack support. Then finally, they have an enterprise tier where they include everything under the sun. That's pretty typical. But this idea of having a free tier and then a free tier but require credit card and allow you to charge some overages is a cool model and it's one that we can actually model in Schematic really, really easily. The other thing I want to call out is in addition to that, they also have add-ons. I know a lot of companies will end up on that middle tier, and not necessarily paying, but then paying for an add-on like Teams, because this is really important if you need HIPAA, you need SSO enforcement, right? It's really common that even though you're on the middle free tier, you'll end up buying an add-on. So what does that look like in Schematic? So I actually quickly modeled, um, a quick version of this in Schematic, um, to kind of show how this would work. And so what you have, again, you have totally free, you have ridiculously cheap, and you have Starship Enterprise. The free tier is free, the middle tier is also free, and then the Starship Enterprise tier costs $2,000 a month. And to show this off, I actually added a session replace feature to each of them. And then actually, let's look at it. It's a little easier to see from here. In— for session replays on the totally free plan, maybe you only get 100 a month. This isn't the real number they give you. They give you far more than this, but for demo purposes, it's 100 a month and that's all you get. But in the middle plan, they're free, but you actually get more. So instead of 100, you get 1,000 a month for free. And then if you go over that, we'll charge you a penny per each session replay. Again, the, the post-log numbers are much lower than this, but this is just a demo. And then finally, at the highest level, um, you know, it's unlimited, right? Because you're paying enterprise fare. And the other thing I want to call out is how easy you can model this idea of add-ons, right? So along with these 3 plans, we also have an add-on. Um, I only modeled the Teams one here, but you can have Teams as an add-on. So even though someone might be checking out at that middle free tier, they could also add on a $450 add-on a month to get Teams. Teams. And this kind of like rounds out what it would take to build a pricing model like PostHogs. To wrap it all up, PostHog is a cool company doing a lot of really interesting things in the dev tool space. And I think this idea of having a free tier and then a free tier that requires a credit card is a really interesting way to kind of segment out the companies who may not need, who may not need all of the paid services today, but are going to be the companies buying from you a quarter from now, two quarters from now, three quarters from now. So that you can focus on them, so you can provide them better support, and so that you can really nurture those accounts so that they're going to be growing ARR in the future. Thanks.