“The revenue maximizing over the lifetime of the customer price may be artificially low versus if you were only selling one tier. Once you have expansion revenue opportunities it radically changes the way you think about that first step — I just want to get you in and start to interact and learn more about you.”

Entry Pricing Should Optimize for Lifetime Value, Not Maximum First-Transaction Revenue

V1 Sports learned from its B2B side that expansion revenue transforms the math of first-sale pricing. Charging the maximum upfront is rational only in one-shot transactions. In a repeat game — subscription apps — getting the user in at a fair price and expanding over time via higher tiers, add-ons, or B2B upsells yields more total revenue than a high entry point that spooks potential subscribers.