Jason Lemkin: Double Your Pricing to Go Upmarket

The Gist

• Lemkin advises doubling pricing on next deal to test upmarket potential
• $100k deals can become $200k with confidence and solution-selling
• Every quarter should bring a new largest customer as proof of upmarket success

• Doubling your pricing on the next deal is a powerful way to go upmarket and learn quickly about your product's value.
• A solution sale can capture 3-20x the revenues of a tool sale with almost the exact same core product.
• Every quarter having a new largest customer is a sign of going upmarket the right way.
• Quoting double may require additional features, better onboarding, or improved customer success, but it forces you to provide a true solution to a big problem.
• Once you successfully close a deal at double the price, make that the new standard and repeat the process.
• Pricing should be based on the problems being solved for the client, not just the product features.

• Double your pricing on the next deal to test and learn about your product's upmarket potential.
• Focus on selling solutions to big problems rather than just tools to justify higher pricing.
• Use the '2x' approach iteratively: once you close a deal at double the price, make that the new baseline and repeat.
• Invest in additional features, onboarding, or customer success if needed to support higher pricing.

• 3-20x (The potential revenue increase from a solution sale compared to a tool sale with the same core product.)
• $100k to $200k (Example of doubling the deal size when moving upmarket, e.g., from Google to Meta as a prospect.)