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Business-model

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When Should a Startup Start Charging? I’ve recently changed my long held belief that all startups should charge immediately upon the release of a new product.

When Should a Startup Start Charging?

I now believe that non-enterprise targeted startups should only charge once you have achieved product/market fit. As explained in this earlier post, I define product/market fit as at least 40% of your active users saying they would be “very disappointed” if they could no longer use your product. The evolution in my thinking to charge only after product/market fit is based on finally working with some “normal startups.” The first five startups I helped take to market all amazingly achieved product/market on the initial release.

For these startups it was right to encourage a quick implementation of the business model. David Heinemeier Hansson at Startup School 08.