{"id":6360,"date":"2015-08-31T15:00:00","date_gmt":"2015-08-31T15:00:00","guid":{"rendered":"https:\/\/mention.com\/blog\/?p=6360"},"modified":"2023-02-21T13:48:48","modified_gmt":"2023-02-21T13:48:48","slug":"3x-increase-mrr","status":"publish","type":"post","link":"https:\/\/mention.com\/en\/blog\/3x-increase-mrr\/","title":{"rendered":"4 Ways to Increase MRR 3x in Less Than a Year"},"content":{"rendered":"

Freemium is known to be a great launching strategy. Giving your software away is a great way to attract early users and spread the word about your solution.
\nHowever, scaling a freemium model is hard<\/strong>, very hard. For 99% of us, it\u2019s clear that isn\u2019t a sustainable model when it means tens of millions (if not hundreds of millions) of users.
\n[Tweet “For most of us, freemium isn’t a sustainable model. – @mvaxelaire”]
\nThat\u2019s partially why, 12 months ago, we decided to change our positioning and target customers. We moved away from our freemium model (targeting prosumers) to a classic free trial model (targeting SMEs).
\nEasier said than done. It required tons of work. And we\u2019re not even done yet.
\nSince we made the change, we\u2019ve tripled our MRR. And that wouldn\u2019t have been possible without it.
\n[Tweet “How @Mention tripled their MRR in less than 12 months.”]
\n\"4<\/a><\/p>\n

Here are the 4 changes we made to increase MRR:<\/strong><\/h2>\n

1. Revamped our pricing model<\/h3>\n

Pricing is awesome. You can change it overnight to adjust to your new positioning. Targeting a prosumers market? You need a free plan. Enterprise market? No self-serve onboarding, only demo requests.
\nOn our side, pricing was the first thing we changed. Specifically, we did 4 things:<\/p>\n

    \n
  1. Killed our (too) well advertised “free plan\u201d:<\/strong> Having a free plan tells users a lot about your positioning and can impact a lot the perceived value users get from it (especially companies).<\/li>\n
  2. Moved away from the “pay per seat approach\u201d:<\/strong> Since we want as many people in the company (remember, we target SMEs now) to use Mention, every new plan offers a package of users available.<\/li>\n
  3. Unbundled features:<\/strong> It used to be all or nothing at Mention. Either you pay and you have everything, or you don\u2019t and you don\u2019t have much. We changed that and unbundled features across our new plans.<\/li>\n
  4. Added an Enterprise plan:<\/strong> As bigger and bigger companies became interested in our product, we naturally added a plan to fit their need.<\/li>\n<\/ol>\n

    Following our pricing changes, our average revenue per account increased by 296%<\/a>.
    \n[Tweet “Pricing is a quick and great way to adjust your positioning. – @mvaxelaire”]
    \nTakeaway:<\/strong> Pricing is a quick and great way to change your positioning. However, it\u2019s not constant and should always be tweaked.<\/em><\/p>\n

    2. Validated our inside sales model<\/h3>\n

    At Mention, we\u2019ve always had 2 types of sales:<\/p>\n