The Problem with Freemium & Rethinking Software Pricing | Luke Hohmann - Author of Profit Streams.

Luke Hohmann is a serial entrepreneur, author, and pricing expert. He recently wrote "Profit Streams," a book about effective software pricing strategies. With experience in multiple startups, successful exits, and even a significant failure, Luke brings valuable insights to the table. Join Host Alex Shartsis in this episode as Luke shares crucial knowledge about software pricing strategies, challenging common misconceptions and highlighting the risks of underpricing in the tech sector. They discuss the benefits of bootstrapping, the importance of understanding customer value, and how to avoid common pricing errors as companies grow. Luke also provides practical advice for founders on quantifying value, institutionalizing customer feedback, and making smart hiring decisions. Show Notes: 0:00 Introduction 1:04 Luke's background 2:58 The importance of pricing in software companies 11:15 Benefits of bootstrapping and equity retention 22:30 Case study: Underpricing in AI fraud detection 36:51 Common pricing errors as companies grow 49:10 Understanding reference pricing 59:28 The importance of discount analysis 1:17:06 Best practices for founders Guest: Luke Hohman (linkedin.com/in/lukehohmann/) Host: Alex Shartsis (linkedin.com/in/shartsis) Audio Engineer & Video Editor - James Fixx (fixxmusic.com) Music by the Great White Shark (Shark Shartsis) The Seed to Sequoia podcast is created by Silverwood Advisors to help founders with practical advice on building successful startups. If you would like to get expert advice for your startup reach out to us on: Website: silverwood.ai Linkedin: linkedin.com/company/silverwood-advisors