Pricing for Lifetime Value of a Customer with Paul Orlando

<p><strong>Paul Orlando</strong> is the Founder of <a href= "https://startupsunplugged.com/">Startups Unplugged</a> and is the author of the book “<a href= "https://www.amazon.com/dp/B08GJVV8RJ/">Growth Units</a>”, a book that makes unit economics straightforward. He builds incubator/accelerator programs around the world, getting companies to solve problems that they couldn’t in other ways, which allows the building of autonomy and skills that keeps employee retention high and maintains the company’s top talent. Paul is an adjunct professor and runs the incubator at USC.</p> <p>In this episode, Paul talks about calculating lifetime value as he shares why it is important to think about pricing in relation to the LTV.</p> <p> </p> <p><strong>Why you have to check out today’s podcast:</strong></p> <ul> <li>Understand the relationship lifetime value has with pricing and why it’s better to learn early and often than to fail fast</li> <li>Find out why overpricing and underpricing are present in various companies</li> <li>Discover why your lifetime value isn’t and will never be limited to one number</li> </ul> <p> </p> <p><strong>“People are really afraid of raising prices. I think it was Marc Andreessen who said, 'a lot of problems go away if you can raise your prices.'”</strong></p> <p><em>– Paul Orlando</em></p> <p> </p> <p><strong>Topics Covered:</strong></p> <p>01:22 – How Paul got into the work of running incubators</p> <p>03:16 – Building incubators and accelerators inside a company and changing the way people work to achieve a certain goal</p> <p>06:05 – Why ‘learn early, learn often’ is a lot better than ‘fail fast’</p> <p>08:32 – Writing a book about calculating lifetime value and its components; why thinking about pricing is important</p> <p>17:15 – Pricing and lifetime value; discussion about over- and underpricing</p> <p>21:00 – Thinking about lifetime value in relation to subscription and non-subscription businesses</p> <p>26:03 – Your lifetime value is and will never be limited to one number; why you shou