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Back to 272 - Anthony Eden, Founder of DNSimple, with Anthony Eden.

Why Does DNSimple Still Require a Credit Card?

On the show, DNSimple never had a free tier. Anybody who used DNSimple had to pay, and fifteen years later a new user still cannot start without committing to putting a card on file.

The decision followed a startup already run on a free model for a long time. On the show, a heavy discount for certain people might be offered, or credit for an extended tryout, but everybody had to put a credit card in. Running the business meant investing time, with infrastructure that had to stay in place. When the product brings value and the customer sees the value, the customer will commit to putting a card on file. A free product only asks for time. An hour on the weekend to play is a different leap from being willing to put a card in and potentially pay a few dollars. Without knowing early that customers make the leap, there is no way to know whether DNSimple has the potential for a successful business.

Transcript

272 - Anthony Eden, Founder of DNSimple ·

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More from this episode

  1. How Did DNSimple Let One Person Reach Many Accounts?DNSimple bound each user to an account at the start. Login credentials were tied to billing and access control.
  2. How Did DNSimple Learn to Describe the Problem First?On the show, DNSimple has used the Shape Up process from Basecamp for a couple of years.
  3. Why Doesn't a Thousand-customer Plan Work for Ten Customers?On the show, scalability is kind of irrelevant in the beginning. The point is to get somebody and form a kernel of a user base.
  4. Why Does No Champion Force a Bigger Marketing Budget?A sale into an organization depends on a champion inside the business, even when the champion will not write the check.

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