In this project, you’ll pull everything together into a first version of your monetization and pricing strategy.

Step 1. Lock the “what you charge for” (proxy/value metric).

• From your shortlist, choose the metric that is:
  • Clear for customers (they instantly understand what they’re paying for).
  • Aligned with value scaling (the more value they get, the more they pay).
    • Remember, while there are a lot of potential metrics, there are only 3 broad categories:
      • Feature-based: do your users primarily get more value by accessing additional product features?
      • Usage-based: do your users primarily get more value by using more of the same feature?
      • Outcome-based: does user value directly map to a simple, measurable outcome that your product produces for them?
• If you’re stuck between two, default to the that is easiest and least risky to implement in the short term.

Step 2. Choose your structure & timing.

• How will you charge? (Usage-based, tiered, flat-rate, per-user, variable).
• When will you charge? (Monthly, annual, per-transaction, trial/freemium, up-front).

Step 3. Define your price range or tiers..

• Use the Quick WTP Tool (adapted from Van Westendorp) with 3–5 prospects or customers.
  • Ask:
    1. At what price would this feel too expensive to ever consider?
    2. At what price would this start to feel expensive, but still worth considering?
    3. At what price would this feel like a good deal?
    4. At what price would this feel so cheap you’d question the quality?
  • From these responses, triangulate a reasonable price band.

Step 4. Record your strategy

Log the following in your Master Strategy Project → “Monetization and Pricing Strategy”

• Value metric (the “what”)
• Structure and timing (the “how and when”)
• Initial price band (the “how much”)