Lenny's Podcast/5 questions to ask when your product sto...

Who does not want to change some copy on their website and double their growth and triple their price? When you say 'is pricing correct,' it's not what is the number - it's is the market we are going after correct?

Lenny's Podcast · 5 questions to ask when your product stops growing | Jason...

“And the the biggest takeaway here is when you say is pricing correct, isn't like, what is the number 20 or 25 or a 100?”

47:49 / 48:31

no. It could that there's a lot of improvement that could be that could be had there. Oh, man. This is such the story is so powerful. Who does not want to change some copy on their website and double their growth and triple their price? And the the biggest takeaway here is when you say is pricing correct, isn't like, what is the number 20 or 25 or a 100? It's it's almost is the market we are going after correct? Is the way we are selling to them correct? Is this price communicating the right sort of story? And then also is the positioning of what problem we solve for you Correct? So there's a lot here. And luckily, I've done a bunch of episodes along this stuff Yes. Which we'll point people to Yes. To go much deeper because this is a very

Why this clip

Opens with an irresistible value proposition then reframes pricing as a strategic rather than tactical question. The 'double growth and triple price' hook is extremely shareable and the insight about market positioning adds substance.

47:49 - 48:3142sBusiness Mechanics

LinkedIn X

What they said next

Only when you generate more value for the customer, you can then decide how to split that with the customer in terms of things like price. How do we create more value for the customer and then split that with them?

59:12 - 31s · Practical Framework

More from this episode

Lenny's Podcast

Business Mechanics

Cancellations in absolute terms, like the number of customers who leave, will triple because you have 5% cancellation and triple it. So still 5% of a tripled number is triple. Cancellations automatically grow as you grow even if you're doing everything right, but marketing doesn't.

This explains a fundamental, counterintuitive truth about SaaS growth - that cancellations scale exponentially while marketing doesn't. The mathematical clarity makes it highly quotable and reveals a mechanism most founders don't understand.

14:59 - 15:3536s

Lenny's Podcast

Practical Framework

Cancellations always overtake marketing. The metaphor here is a leaky bucket where you're adding water to keep up with the leak. Except the leaks automatically increase. There's this maximum size you could ever be - it's when churn equals growth.

The leaky bucket metaphor combined with the mathematical ceiling concept creates a memorable, actionable framework. The visual metaphor makes complex SaaS mechanics accessible and quotable.

15:54 - 16:3541s

Lenny's Podcast

Bold/Contrarian

Anything above 3% per month cancellation is terrible. And people are like, 'oh no, it's okay. Five is fine. Seven, six.' There's a different metric I like to use because cancellations grow faster than marketing.

Direct challenge to accepted wisdom with specific numbers. The contrarian framing ('people say X is fine, but...') combined with a teaser for a better approach creates strong engagement potential.

13:48 - 14:2234s

Lenny's Podcast

Practical Framework

Only when you generate more value for the customer, you can then decide how to split that with the customer in terms of things like price. How do we create more value for the customer and then split that with them?

Provides a clear mental model for value-based pricing that flips the typical approach. The 'split value' framework is quotable and actionable, offering a fresh perspective on pricing strategy.

59:12 - 59:4331s

Lenny's Podcast

Business Mechanics

One way to offset the cancellations is if existing customers bring in new customers. This is absolutely something that happens in consumer, but it's also an answer to cancellations that grow exponentially - because existing customers bringing in new customers also scales.

Offers a specific solution to the exponential churn problem with clear logic. The insight that referrals scale with customer base provides an actionable counter to the leaky bucket dynamic discussed earlier.

1:04:29 - 1:05:0334s

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Who does not want to change some copy on their website and double their growth and triple their price? When you say 'is pricing correct,' it's not what is the number - it's is the market we are going after correct?

Transcript

Why this clip

More from this episode

Cancellations in absolute terms, like the number of customers who leave, will triple because you have 5% cancellation and triple it. So still 5% of a tripled number is triple. Cancellations automatically grow as you grow even if you're doing everything right, but marketing doesn't.

Cancellations always overtake marketing. The metaphor here is a leaky bucket where you're adding water to keep up with the leak. Except the leaks automatically increase. There's this maximum size you could ever be - it's when churn equals growth.

Anything above 3% per month cancellation is terrible. And people are like, 'oh no, it's okay. Five is fine. Seven, six.' There's a different metric I like to use because cancellations grow faster than marketing.

Only when you generate more value for the customer, you can then decide how to split that with the customer in terms of things like price. How do we create more value for the customer and then split that with them?

One way to offset the cancellations is if existing customers bring in new customers. This is absolutely something that happens in consumer, but it's also an answer to cancellations that grow exponentially - because existing customers bringing in new customers also scales.

From the blog