Wade Foster, co-founder and CEO of Zapier, shares how they completely revamped their pricing model - and actually REDUCED revenue in the short term - to drive explosive long-term growth.
Since launching in 2011, Zapier has grown to help millions connect their apps without code, reaching a valuation over $5B with minimal VC funding. Their recent pricing change offers fascinating insights for SaaS founders.
Key takeaways:
Zapier eliminated their dual-metric pricing (Zaps + Tasks) to simplify the customer experience
They made unlimited Zaps available on all plans - removing a major friction point
Every plan now includes pay-as-you-go options beyond the base subscription
They stopped counting utility features as billable tasks - providing more value
The result? Short-term revenue dropped significantly, but task consumption and customer happiness soared. This bet on long-term growth would have been impossible for most VC-backed companies.
More insights:
Being profitable and bootstrap-focused gave them freedom to make radical customer-first decisions that sacrificed short-term revenue
Pricing "debt" accumulates over time when you experiment with different models - eventually requiring a reset to first principles
The best pricing aims for customer "love" - Wade literally used this word - not just reluctant payment
Competition constantly forces pricing innovation - especially with direct competitors who counter-position against market leaders
AI is rapidly democratizing entrepreneurship - Wade sees teams of 10-20 people reaching millions in revenue with minimal engineering, driven by domain expertise paired with no-code tools
What pricing changes have transformed your business? Share your experience below 👇
Share this post