drop by 50­80%, toward 1­1.5% per month. As you add more seats, the churn will trend toward 0% and eventually become negative: your customers will add more seats than they cancel over time. But that 5­seat Team Edition sale customer is still there in Year 2 and Year 3, paying you; maybe even adding seats.Within a $30/month product, all of a sudden you've gone from a $240 Customer Lifetime Value for the single seat purchase to a $5,400 CLTV over three years – from the same customer, from the same basic core product – just with whatever additional functionality you needed for your Team or Enterprise edition. The math just gets better as you support slightly larger teams. And if you create a higher­end level that’s $50, $100 or more per month, the math compounds even faster. Even if a customer isn’t a fit for it, a side benefit is increasing the perceived value of the $30 product. For example, having a top package of $10,000 per month can make your $1,000 per month offer feel more affordable (a psychological principle called anchoring.) Salesforce.com started with a $65 per­month/per­user product and eventually was able to create $125­ and $250­per­month versions. So what's my point? I'm not saying that if you are building a freemium or self­service product you should immediately Go Enterprise. (Although I've done that exact path.)What I am suggesting is that you at least think about adding a layer. If the one­seat freemium thing is working for you, add a Team edition, or a so­called Enterprise edition. Even if it's just for an Enterprise of Five. And hire a sales rep – or better yet, two – to actually talk to these customers and try to close them, to go beyond just customer support. If it works – just that little extra functionality, for that extra edition – you can dramatically increase your growth rate. All of a sudden, that same customer, that same lead who came by your website or app, all of a sudden is worth 20­30x more. Same effort to get them to your site or app. But 20­30x the return PRICING IS ALWAYS A PAIN If you’re struggling with nailing down your pricing, remember: Pricing is always frustrating and never perfect. It’s easier to start with higher pricing and then lower it, than to start low and raise it later. Getting your pricing right is often – if not always – confusing and frustrating. Many companies end up missing out on a lot of revenue by underpricing. Here are a couple of approaches you can use: It’seasier to get started with “bottom­up” comparative pricing. First, take a look at what people are paying for anything that’s similar to what you're offering; This gives you a useful baseline for expectations. For example, most B2B SaaS companies charge between $10 and $60 a month per general user. After seeing lots of services priced this way, buyers naturally expect similar services to charge a similar amount. You can charge more, but you'll need a believable justification for it, and users with compelling needs. Come up with a few products or packages, guesstimate the prices, and bounce them off live prospects. There's no secret formula or 7­step magic system for this; just make it up as you go and see what works. (Hmm – the same way you “figure out life”.) It won't take long to get the data you need, or to get a feel for what's working and what needs adjusting.