Oct 16, 2013

New Price Tiers for Growing Companies

We’re adding new users at a rate of more than 8,000 per day now, and most are small businesses, solopreneurs, startups, and freelancers. These users told us that they look forward to the day when their lists grow up to "paid status," but the gaps in our price plans were too wide. The jump from $15 to $30 per month can indeed be scary. I remember the early days of MailChimp, when moving from our little $30-per-month Mindspring account to a managed services data center made me sweat—I think our hosting costs went up to $300 per month. A few years later, when we upgraded to our first enterprise-strength mail server, the cost was about $10,000, which was the largest check I had ever written in my life at the time (and so I had a bit of a panic attack). Nowadays, we’re spending multiple millions of dollars investing in hundreds of servers in multiple colocation facilities (and the panic attacks have evolved into mild heart attack moments).

So we’re adding more price sub-tiers, just to help make things smoother as early stage companies grow their lists.

We’re basically filling in some gaps with $5 increments, from $10 all the way up to $240 (So $10, $15, $20…$240). It’s nothing too radical. We had feedback that jumping from $30 to $50 was a bit much, and from $75 to $150 was truly frightening. Here’s a detailed breakdown of all the intermediate steps we added (heads-up: there’s lots of scrolling).

Why on earth?

We worked out the tiers so prices will not increase for anybody. In fact, prices might even decrease for some users. Why on earth would we do something like that (especially when I’ve got some really big server expenses—omg here come the panic attacks)? Early stage businesses need all the help they can get. While I don’t believe we can reach out and help every individual business grow (some things you really do have to figure out yourself) I do believe we can make the easiest, most powerful app at the best possible price. We’re also putting a ton more resources into scaling up our self-help knowledge base, video tutorials, and Experts Directory. All of these things are there to empower our customers. And if there’s one thing I’ve learned over the years, it’s that empowerment is the best form of customer service, and customer service is the best form of marketing. Okay, two things.

For those of you with larger lists and higher sending frequency, you might want to consider the CPM plans that we recently launched. Scroll down our pricing page to see them. If you’re sending at high volumes, the chances are good that you’re a power user who could benefit from using Mandrill (great for ops and dev teams), which has deep integration with MailChimp (great for keeping marketing teams from bothering those ops and dev teams).