A short YouTube talk by James Sinclair advising startup founders to start charging customers early rather than relying on extended free use. Sinclair argues founders often avoid charging due to guilt or fear that the product isn’t ‘good enough,’ but revenue conversations are necessary to discover product-market fit and understand the value of the solution.
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I think a really early mistake entrepreneurs make is they don't price quick enough into the market. They start kind of free because they're getting the research, they get in the market, they're getting the learning, they're speaking to people, people are excited, they want to continue to give a free and they don't want to have the hard conversation. Most entrepreneurs are not great about talking to money with customers because they feel this extraordinary sense of guilt. My product isn't good enough, you shouldn't really have to pay and you have to get over that gap really, really quickly. I don't think there should be any free. I think if you are asking people to beta, if you ask to try, you put on a trial because it's going to be very hard to convert those legacy free to paid anytime in the future. But I think a you need to start having a conversation. But you don't really have PMF until you know what you can charge and you can be in the market with revenue. So until then it's just people using the free software, have the hard conversation, start charging for it and and get going on trying to work out what is the value of your solution. Good luck.