You’ll also have more people calling in or emailing trying to resolve this, which brings us back to higher customer service costs.

Due to the type of user you’re also going to have a much higher rate of failures, which means more retries, follow-ups (Sendgrid is charging per email after all), and more users who are in the grace period whose data you have to retain but who aren’t actually paying for it. Even if you build better tools and guides for self service that’s an engineering investment.Ĭredit card transaction fees will also be higher. Customer service costs are going to be (likely disproportionately) higher for the latter group simply because you’ve got a different pool - they are no longer your business users and power users, they’re grandma and grandpa who have no idea what they’re doing or how to explore and figure out how to use your service.

Having 100 customers paying $ paying $1 are very different things. Just think about everything else that goes into providing the service and getting (and retaining) users.Īfter you’ve included marketing and all the business people who are guiding the direction of the product you’ve got the HR and internal IT people and systems supporting all of that.

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