In the past several months, we embarked on a journey with our pricing and payment models. This experience has been both enlightening and humbling, revealing the dynamic nature of building a company and the learnings that come with discovery. 
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I want to share with you the key milestones and lessons we’ve learned along the way, as well as our vision for the future.
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Timeline and Key Changes

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1. October 2023: Launched our payments product for prime time, creating opportunities for transaction-based fees.

2. Until November 2023: Zomentum operated on paid subscription plans.‍

3. December 2023 to April 2024: We made the bold decision to make our product free forever, experimenting with setup fees and free trials.
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Why did we do this

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At that point This initiative was amazing to us because, once partners started adopting the payments system, it opened up the possibility to make Zomentum free for everyone and we made money from the transaction fees. 
Our aim was to enhance the user experience while simultaneously creating a sustainable financial model through transaction-based fees.

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Product innovation

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• Automated Payment Collection: We introduced a feature that allows payments to be collected immediately after a quote is signed and facilitates recurring payments, ensuring a seamless process for both partners and clients.

• Seamless Integration: We provided existing clients with a new link for easy transition, reconciling with accounting systems to ensure timely payments.
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Learnings and Outcomes

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1. High Quoting Adoption: Despite initial concerns, partners valued our tool even when offered for free. This debunked the notion that free products are undervalued, proving that quality and utility drive engagement.
2. Slow Payments Adoption: Adoption of our payment system was slower than anticipated. Despite our efforts to handhold partners through the migration process, offer competitive rates, and remove platform fees, we faced significant challenges.
   • Data Migration Delays: Providers were exceedingly slow in migrating data despite legal obligations, causing frustrating delays.
   • Provider Lock-in: Some providers threatened contracts and kept partners locked in, hindering their transition to our innovative solutions.‍
3. Encouraging Cohort Health: For those partners who have adopted our payments system, the results have been very encouraging. These cohorts are very healthy, growing every month, demonstrating the potential and effectiveness of our solution.
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Decision and Reflection

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Over the past 5 months, it's become clear to us that payments, for now, can only be a supplementary revenue source, and can not replace our subscription revenue source. Our core business must still be a subscription business. 
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We have hence rolled back to subscription fees.

It would be wrong not to honor the free offer for those who were promised it, but the core idea has always been to move our community forward. While it might appear that we changed things frequently, each step was taken with the intent to innovate and improve.

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Looking Ahead

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Building a company is a journey of discovery, filled with both successes and setbacks. Mistakes are inevitable, but what matters is our commitment to course correction and continuous improvement. We are hopeful about the future and remain dedicated to putting our customers first.
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We deeply appreciate the trust and support you have shown us so far. We hope that you, as business owners, will empathize with our intent and continue to support us as we strive to make your lives easier and your businesses more successful.
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Thank you for being part of our journey.

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Shruti Ghatge
Co-Founder & CEO, Zomentum