If you’re an early-stage founder and you’re not charging for money for a product that you intend to eventually charge money for, you should start doing it, now. That’s because the best way to tell whether you’ll be able to charge money tomorrow is to see if you can successfully charge money today. If early customers refuse to pay for your product then you have a strong signal that you need to change something with your approach. Many founders avoid this at first because it’s uncomfortable and because it’s a big hairy problem. It’s so abstract that it’s partly philosophical. That’s why there’s almost as many theories of pricing around as there are entrepreneurs. In my opinion, the best way to approach a hairy, abstract problem like this is to simplify it by using a heuristics, or rules of thumb, as a starting point. Below are a few common heuristics that worked for me at Firefly.
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