How to Avoid Over Monetization and Build a Strong Brand Community

Name: How to Avoid Over Monetization and Build a Strong Brand Community
Uploaded: 2024-04-04T13:04:46+00:00
Duration: 54 s
Channel: Jason M. Lemkin
Description: Rob discusses how SaaS companies can avoid killing their brand by squeezing customers too hard. One beloved product demanded a $50,000 upfront license…

4 Apr 2024 · 1 min

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0:54

Rob discusses how SaaS companies can avoid killing their brand by squeezing customers too hard. One beloved product demanded a $50,000 upfront license increase with a shutdown threat, a move that destroyed customer trust. The real tension: how to grow revenue without sacrificing the community loyalty that made you valuable in the first place.

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Let me ask a question to transition to a topic of efficiency, which will be a fun one to talk about. But when you have a brand that people have high affinity for, like a Vimeo, especially coming in from where you have, how do you make sure you don't over-monetize that? How do you invest in the positive attributes, the community? Because there's so much— I think part of the tragedy of SaaS the last 18 months is over-monetizing as things got harder, as NR came down, as growth came down. There is, I want to hear from you, but there was a story, Rob, in SaaS, or there is a beloved product we all use all the time. And I, among others, we among others paid $300 a month for this product. And we got a threatening email at 11 o'clock at night saying we had to spend, pay $50,000 for 5 times as much license upfront. And if we didn't pay it by Friday, they would turn it off. Now, why did they do that?