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beeware / paying-the-piper

A project for discussing ways to fund open source development.
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What level to pitch pricing tiers? #50

Open tomchristie opened 9 years ago

tomchristie commented 9 years ago

I thought I'd share a breakdown of the pricing tiers in Django REST framework's Kickstarter campaign, including number of backers and resulting portion of funding. Although all projects will have differing userbase/organization demographics and will have different skews, I still think it may be useful to others to get a sense of which pricing tiers are worth aiming at.

price # backers % backers £ total % total tier equivalent (*)
£5 91 22% £455 1% ~$0.6/mo
£10 124 31% £1,240 4% ~$1.3/mo
£25 42 10% £1,050 3% ~$3/mo
£50 60 15% £3,000 9% ~$6/mo
£100 45 11% £4,500 14% ~$12/mo
£250 26 6% £6,500 20% ~$32/mo
£1,000 10 2% £10,000 31% ~$128/mo
£5,000 1 0.2% £5,000 15% ~$638/mo

Take home is that the lowest priced three tiers represent 64% of the backers, but only 9% of the total income. The remaining five tiers are where there was money to be made for the project.

(That's not to say that engagement at lower levels might not still be valuable, ofc)

(*) I've tried to give a rough USD/mo equivalent by treating the Kickstarter funding as if it had instead been a dollar price invested in a year long project, and seeing where the $/mo tier ranges would come out.

nanuxbe commented 9 years ago

@tomchristie I don't know if you have that information but I was wondering if you would be able to share whether the last 3 tiers (66% of total) are mainly business entities or if they are individuals/non-profit orgs?

tomchristie commented 9 years ago

Those top priced three were all businesses, with the exception of DSF who were a gold sponsor (£250). The £100 level was 75% businesses, and 25% individuals. The £50 level was 10% businesses, and 90% individuals. The final lowest priced three levels were all individuals.

I guess take-home of that is breakout of total is ~20% individual, ~80% business.

(Tho note that individual/business might be a bit fuzzy for some cases of small biz owners, this just presents how they chose to represent themselves.)

nanuxbe commented 9 years ago

I guess this confirms that the efforts of this repo should be directed towards businesses as, in the case of DRF, businesses represent about 75% of the funding (while only being roughly 16% of the funders)

nanuxbe commented 9 years ago

@tomchristie yet another Q. Do you think the rewards you offered on kickstarter played a big part in the funding or have most backers not claimed those rewards so far?

tomchristie commented 9 years ago

I don't have any evidence around how important they were, but they feel important. Plenty of folks didnt take up their support option, but still helps round out the pitch.

nayafia commented 9 years ago

super interesting data and takeaways, thanks for sharing!