Lessons on monetization, pricing, and PMF: a chat with Elena Verna

Elena Verna, a recognized figure in B2B product growth, shares insights on monetization and pricing strategies in a discussion that underscores the importance of continuous iteration and testing for sustainable business growth. She emphasizes that monetization extends beyond pricing, involving a deep understanding of core use cases and value metrics, and highlights the necessity for growth teams to regularly update their monetization models to align with market demands and product evolution. Verna advocates for A/B testing as a strategic tool, stressing the need to experiment with different aspects of monetization, such as feature allocation and conversion friction, and advises on creating a dedicated "monetization pod" within companies to integrate product, sales, marketing, and finance efforts. She discusses the fading boundaries between B2C and B2B models and suggests that product-led sales are bridging the gap between self-serve and sales-led approaches. While acknowledging the challenges of usage-based pricing, especially in terms of budget predictability, Verna argues that aligning pricing with customer outcomes is crucial, and recommends strategies like overage management to address potential tensions.