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Is Stack Overflow for Teams' pricing model really a 500% increase when you have more than 10 users?


SO Teams ad shows a higher price than expected (the real price is lower!)Coming Soon: Stack Overflow For Teams!Should we get rid of the quality-control bans (post bans) in Stack Overflow for Teams?Do accounts/rep transfer over to Stack Overflow for teams?Stack Overflow For Teams should have the option to notify the entire team via email about a posted questionWhat is a “team” in Stack Overflow for Teams?In Stack Overflow for Teams can a team administrator/moderator “pin” key questions?How to customize the landing page information within Stack Overflow for Teams?What happened to the $10/month plan for 10 users on Stack Overflow for Teams?Stack Overflow for Teams usage statisticDoes Stack Overflow for Teams have a pricing model that supports large organizations?













1















I am trying to understand and clarify the Stack Overflow for Teams pricing model. I need to justify this to my organization.



The pricing I saw on Stack Overflow for Teams says that it is $1 per user per month for the first 10 users, and then $5 per month for every additional user?



That's a reverse quantity discount, in other words, the more people you have the more you pay? Who does that?









share
















migrated from stackoverflow.com Apr 1 at 18:36


This question came from our site for professional and enthusiast programmers.



















  • Related confusion, but in the opposite direction (This person was surprised that it wasn't a flat $5 per person, and that they got 10 people for the price of 2): SO Teams ad shows a higher price than expected (the real price is lower!)

    – Davy M
    Apr 1 at 18:41






  • 1





    Note that Stack Overflow for Teams is more marketed towards small teams; hence the discount for the first 10 users. Stack Overflow Enterprise is another product that is similar, but geared towards much larger teams.

    – Davy M
    Apr 1 at 18:43















1















I am trying to understand and clarify the Stack Overflow for Teams pricing model. I need to justify this to my organization.



The pricing I saw on Stack Overflow for Teams says that it is $1 per user per month for the first 10 users, and then $5 per month for every additional user?



That's a reverse quantity discount, in other words, the more people you have the more you pay? Who does that?









share
















migrated from stackoverflow.com Apr 1 at 18:36


This question came from our site for professional and enthusiast programmers.



















  • Related confusion, but in the opposite direction (This person was surprised that it wasn't a flat $5 per person, and that they got 10 people for the price of 2): SO Teams ad shows a higher price than expected (the real price is lower!)

    – Davy M
    Apr 1 at 18:41






  • 1





    Note that Stack Overflow for Teams is more marketed towards small teams; hence the discount for the first 10 users. Stack Overflow Enterprise is another product that is similar, but geared towards much larger teams.

    – Davy M
    Apr 1 at 18:43













1












1








1








I am trying to understand and clarify the Stack Overflow for Teams pricing model. I need to justify this to my organization.



The pricing I saw on Stack Overflow for Teams says that it is $1 per user per month for the first 10 users, and then $5 per month for every additional user?



That's a reverse quantity discount, in other words, the more people you have the more you pay? Who does that?









share
















I am trying to understand and clarify the Stack Overflow for Teams pricing model. I need to justify this to my organization.



The pricing I saw on Stack Overflow for Teams says that it is $1 per user per month for the first 10 users, and then $5 per month for every additional user?



That's a reverse quantity discount, in other words, the more people you have the more you pay? Who does that?







support stack-overflow-for-teams





share














share












share



share








edited Apr 2 at 0:45









Peter Mortensen

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14.4k4 gold badges16 silver badges14 bronze badges










asked Mar 27 at 17:38









BermudaLambBermudaLamb

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1022 bronze badges





migrated from stackoverflow.com Apr 1 at 18:36


This question came from our site for professional and enthusiast programmers.











migrated from stackoverflow.com Apr 1 at 18:36


This question came from our site for professional and enthusiast programmers.









migrated from stackoverflow.com Apr 1 at 18:36


This question came from our site for professional and enthusiast programmers.














  • Related confusion, but in the opposite direction (This person was surprised that it wasn't a flat $5 per person, and that they got 10 people for the price of 2): SO Teams ad shows a higher price than expected (the real price is lower!)

    – Davy M
    Apr 1 at 18:41






  • 1





    Note that Stack Overflow for Teams is more marketed towards small teams; hence the discount for the first 10 users. Stack Overflow Enterprise is another product that is similar, but geared towards much larger teams.

    – Davy M
    Apr 1 at 18:43

















  • Related confusion, but in the opposite direction (This person was surprised that it wasn't a flat $5 per person, and that they got 10 people for the price of 2): SO Teams ad shows a higher price than expected (the real price is lower!)

    – Davy M
    Apr 1 at 18:41






  • 1





    Note that Stack Overflow for Teams is more marketed towards small teams; hence the discount for the first 10 users. Stack Overflow Enterprise is another product that is similar, but geared towards much larger teams.

    – Davy M
    Apr 1 at 18:43
















Related confusion, but in the opposite direction (This person was surprised that it wasn't a flat $5 per person, and that they got 10 people for the price of 2): SO Teams ad shows a higher price than expected (the real price is lower!)

– Davy M
Apr 1 at 18:41





Related confusion, but in the opposite direction (This person was surprised that it wasn't a flat $5 per person, and that they got 10 people for the price of 2): SO Teams ad shows a higher price than expected (the real price is lower!)

– Davy M
Apr 1 at 18:41




1




1





Note that Stack Overflow for Teams is more marketed towards small teams; hence the discount for the first 10 users. Stack Overflow Enterprise is another product that is similar, but geared towards much larger teams.

– Davy M
Apr 1 at 18:43





Note that Stack Overflow for Teams is more marketed towards small teams; hence the discount for the first 10 users. Stack Overflow Enterprise is another product that is similar, but geared towards much larger teams.

– Davy M
Apr 1 at 18:43










1 Answer
1






active

oldest

votes


















6















This answer is based on general knowledge of the product and not insider knowledge. At least I don't think anyone explained it to me.



Stack Overflow for Teams depends on the network effect to be useful. While it could be handy for a single employee to document their work (and I've used our Team that way), it comes into its own when there are more people answering each other's questions. Ideally, the entire team would be active on the site as a matter of course. A per-person price risks teams saving money by leaving off members who might have the best answer to a particular question. So that's not ideal.



On the other hand, a flat monthly fee doesn't seem fair either— especially since we have Enterprise for larger teams/organizations. It would certainly leave money on the table since we'd either price the product for large teams (causing small teams to look elsewhere) or price the product for small teams (which would be a big discount for teams willing to pay more). For more on the economics of pricing and segmentation, please read Joel's Camels and Rubber Duckies.



Fortunately, as in so many areas of life, site participation follows a power law. A small number of participants contribute a disproportionate amount of content. So while we'd like to encourage teams to include every member, they can probably start building a useful corpus with the top X most interested users. Charging a flat fee for the first X users encourages customers to fill up those slots, which maximizes the odds they'll reach critical mass. Ten seems as good a number as any and it doesn't seem too onerous for organizations to pay $10 a month for this sort of product.



Once a Team starts to show its value, I expect customers will be interested in adding more users. Not only will more users potentially add content, but they will benefit from existing content too. There's a real value in having voters who encourage helpful users by upvoting their content. I don't think customers will worry too much about the price if answers on the site save developers a few minutes a week (net). From what I can tell, $5 is cheaper than Slack.



Bottom line, the $10 price is intended to get small teams in the door and make it easier for larger teams to try the product out. Once an organization is ready to pay for more than 10 users, they should be pretty well convinced that the price per user is worthwhile. At the moment, Teams pricing is straightforward to explain and understand, which is probably a plus.





share




































    1 Answer
    1






    active

    oldest

    votes








    1 Answer
    1






    active

    oldest

    votes









    active

    oldest

    votes






    active

    oldest

    votes









    6















    This answer is based on general knowledge of the product and not insider knowledge. At least I don't think anyone explained it to me.



    Stack Overflow for Teams depends on the network effect to be useful. While it could be handy for a single employee to document their work (and I've used our Team that way), it comes into its own when there are more people answering each other's questions. Ideally, the entire team would be active on the site as a matter of course. A per-person price risks teams saving money by leaving off members who might have the best answer to a particular question. So that's not ideal.



    On the other hand, a flat monthly fee doesn't seem fair either— especially since we have Enterprise for larger teams/organizations. It would certainly leave money on the table since we'd either price the product for large teams (causing small teams to look elsewhere) or price the product for small teams (which would be a big discount for teams willing to pay more). For more on the economics of pricing and segmentation, please read Joel's Camels and Rubber Duckies.



    Fortunately, as in so many areas of life, site participation follows a power law. A small number of participants contribute a disproportionate amount of content. So while we'd like to encourage teams to include every member, they can probably start building a useful corpus with the top X most interested users. Charging a flat fee for the first X users encourages customers to fill up those slots, which maximizes the odds they'll reach critical mass. Ten seems as good a number as any and it doesn't seem too onerous for organizations to pay $10 a month for this sort of product.



    Once a Team starts to show its value, I expect customers will be interested in adding more users. Not only will more users potentially add content, but they will benefit from existing content too. There's a real value in having voters who encourage helpful users by upvoting their content. I don't think customers will worry too much about the price if answers on the site save developers a few minutes a week (net). From what I can tell, $5 is cheaper than Slack.



    Bottom line, the $10 price is intended to get small teams in the door and make it easier for larger teams to try the product out. Once an organization is ready to pay for more than 10 users, they should be pretty well convinced that the price per user is worthwhile. At the moment, Teams pricing is straightforward to explain and understand, which is probably a plus.





    share































      6















      This answer is based on general knowledge of the product and not insider knowledge. At least I don't think anyone explained it to me.



      Stack Overflow for Teams depends on the network effect to be useful. While it could be handy for a single employee to document their work (and I've used our Team that way), it comes into its own when there are more people answering each other's questions. Ideally, the entire team would be active on the site as a matter of course. A per-person price risks teams saving money by leaving off members who might have the best answer to a particular question. So that's not ideal.



      On the other hand, a flat monthly fee doesn't seem fair either— especially since we have Enterprise for larger teams/organizations. It would certainly leave money on the table since we'd either price the product for large teams (causing small teams to look elsewhere) or price the product for small teams (which would be a big discount for teams willing to pay more). For more on the economics of pricing and segmentation, please read Joel's Camels and Rubber Duckies.



      Fortunately, as in so many areas of life, site participation follows a power law. A small number of participants contribute a disproportionate amount of content. So while we'd like to encourage teams to include every member, they can probably start building a useful corpus with the top X most interested users. Charging a flat fee for the first X users encourages customers to fill up those slots, which maximizes the odds they'll reach critical mass. Ten seems as good a number as any and it doesn't seem too onerous for organizations to pay $10 a month for this sort of product.



      Once a Team starts to show its value, I expect customers will be interested in adding more users. Not only will more users potentially add content, but they will benefit from existing content too. There's a real value in having voters who encourage helpful users by upvoting their content. I don't think customers will worry too much about the price if answers on the site save developers a few minutes a week (net). From what I can tell, $5 is cheaper than Slack.



      Bottom line, the $10 price is intended to get small teams in the door and make it easier for larger teams to try the product out. Once an organization is ready to pay for more than 10 users, they should be pretty well convinced that the price per user is worthwhile. At the moment, Teams pricing is straightforward to explain and understand, which is probably a plus.





      share





























        6














        6










        6









        This answer is based on general knowledge of the product and not insider knowledge. At least I don't think anyone explained it to me.



        Stack Overflow for Teams depends on the network effect to be useful. While it could be handy for a single employee to document their work (and I've used our Team that way), it comes into its own when there are more people answering each other's questions. Ideally, the entire team would be active on the site as a matter of course. A per-person price risks teams saving money by leaving off members who might have the best answer to a particular question. So that's not ideal.



        On the other hand, a flat monthly fee doesn't seem fair either— especially since we have Enterprise for larger teams/organizations. It would certainly leave money on the table since we'd either price the product for large teams (causing small teams to look elsewhere) or price the product for small teams (which would be a big discount for teams willing to pay more). For more on the economics of pricing and segmentation, please read Joel's Camels and Rubber Duckies.



        Fortunately, as in so many areas of life, site participation follows a power law. A small number of participants contribute a disproportionate amount of content. So while we'd like to encourage teams to include every member, they can probably start building a useful corpus with the top X most interested users. Charging a flat fee for the first X users encourages customers to fill up those slots, which maximizes the odds they'll reach critical mass. Ten seems as good a number as any and it doesn't seem too onerous for organizations to pay $10 a month for this sort of product.



        Once a Team starts to show its value, I expect customers will be interested in adding more users. Not only will more users potentially add content, but they will benefit from existing content too. There's a real value in having voters who encourage helpful users by upvoting their content. I don't think customers will worry too much about the price if answers on the site save developers a few minutes a week (net). From what I can tell, $5 is cheaper than Slack.



        Bottom line, the $10 price is intended to get small teams in the door and make it easier for larger teams to try the product out. Once an organization is ready to pay for more than 10 users, they should be pretty well convinced that the price per user is worthwhile. At the moment, Teams pricing is straightforward to explain and understand, which is probably a plus.





        share















        This answer is based on general knowledge of the product and not insider knowledge. At least I don't think anyone explained it to me.



        Stack Overflow for Teams depends on the network effect to be useful. While it could be handy for a single employee to document their work (and I've used our Team that way), it comes into its own when there are more people answering each other's questions. Ideally, the entire team would be active on the site as a matter of course. A per-person price risks teams saving money by leaving off members who might have the best answer to a particular question. So that's not ideal.



        On the other hand, a flat monthly fee doesn't seem fair either— especially since we have Enterprise for larger teams/organizations. It would certainly leave money on the table since we'd either price the product for large teams (causing small teams to look elsewhere) or price the product for small teams (which would be a big discount for teams willing to pay more). For more on the economics of pricing and segmentation, please read Joel's Camels and Rubber Duckies.



        Fortunately, as in so many areas of life, site participation follows a power law. A small number of participants contribute a disproportionate amount of content. So while we'd like to encourage teams to include every member, they can probably start building a useful corpus with the top X most interested users. Charging a flat fee for the first X users encourages customers to fill up those slots, which maximizes the odds they'll reach critical mass. Ten seems as good a number as any and it doesn't seem too onerous for organizations to pay $10 a month for this sort of product.



        Once a Team starts to show its value, I expect customers will be interested in adding more users. Not only will more users potentially add content, but they will benefit from existing content too. There's a real value in having voters who encourage helpful users by upvoting their content. I don't think customers will worry too much about the price if answers on the site save developers a few minutes a week (net). From what I can tell, $5 is cheaper than Slack.



        Bottom line, the $10 price is intended to get small teams in the door and make it easier for larger teams to try the product out. Once an organization is ready to pay for more than 10 users, they should be pretty well convinced that the price per user is worthwhile. At the moment, Teams pricing is straightforward to explain and understand, which is probably a plus.






        share













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        share








        edited Apr 2 at 7:37









        Adinia

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        answered Apr 2 at 7:30









        Jon EricsonJon Ericson

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