Pricing Models

This document outlines the pricing strategy and business models for the ReX content system, detailing different tiers, pricing structures, and monetization approaches.

Core Principles

The pricing strategy is built on these foundational principles:

1. Value-Based Pricing: Pricing reflects the value delivered, not just cost-plus
2. Open Core Model: Core functionality remains open source and free
3. Sustainable Growth: Pricing that supports long-term development and maintenance
4. Scalable Tiers: Options that grow with customer needs
5. Transparent Pricing: Clear, predictable pricing without hidden costs

Business Models

Open Core

The foundational business model combines open source with commercial offerings:

Open Source Core:

• MIT-licensed core library
• Essential content functionality
• Documentation and examples
• Community support

Commercial Extensions:

• Hosted platform
• Premium components and templates
• Collaboration features
• Team and enterprise capabilities
• Priority support

Tiered SaaS

The primary revenue model is a tiered Software-as-a-Service offering:

Individual Tier

Free (Self-Hosted):

• Access to full open-source library
• Self-hosting and maintenance
• Community support
• Basic templates and components

Pro ($19/month):

• Hosted content system
• Automatic updates and maintenance
• Access to premium components
• Custom domains and white-labeling
• Basic analytics
• Email support

Team Tier

Team ($49/month):

• Everything in Pro, plus:
• Up to 5 team members
• Basic collaboration features
• Team templates and shared components
• Version history and rollback
• Team-level analytics
• Priority email support

Business ($149/month):

• Everything in Team, plus:
• Up to 15 team members
• Advanced collaboration features
• Publishing workflows and approvals
• Role-based permissions
• Content scheduling
• API access for custom integrations
• Chat and priority email support

Enterprise Tier

Enterprise ($499+/month):

• Everything in Business, plus:
• Custom user limits
• Single Sign-On (SSO) integration
• Advanced security features
• SLA guarantees
• Dedicated support representative
• Custom onboarding and training
• On-premise deployment option (additional cost)

Component Marketplace

A complementary revenue stream through a component marketplace:

For Component Creators:

• Platform for sharing and selling React components
• 70/30 revenue share (70% to creators)
• Analytics and usage statistics
• Versioning and update management

For Component Users:

• Access to ecosystem of MDX-optimized components
• Both free and premium options
• Consistent integration patterns
• Version management

Professional Services

Additional revenue opportunities through services:

Implementation Services:

• Custom implementation and integration
• Migration from existing systems
• Performance optimization
• Component development

Training & Support:

• Custom training workshops
• Advanced support packages
• Architecture consulting
• Best practices guidance

Pricing Comparison

Feature	Free	Pro $19/mo	Team $49/mo	Business $149/mo	Enterprise $499+/mo
Core Functionality	✓	✓	✓	✓	✓
Hosting	Self-hosted	✓	✓	✓	✓
Users	Unlimited	1	5	15	Custom
Premium Components	-	✓	✓	✓	✓
White Labeling	-	✓	✓	✓	✓
Collaboration	-	-	Basic	Advanced	Advanced
Workflow Approvals	-	-	-	✓	✓
Role Permissions	-	-	-	✓	✓
SSO Integration	-	-	-	-	✓
API Access	-	-	-	✓	✓
Support	Community	Email	Priority Email	Chat & Email	Dedicated Rep
SLA	-	-	-	-	✓

Pricing Strategy Considerations

Competitive Analysis

Content Management Systems:

• WordPress (Free, $25-$59/mo for business)
• Contentful ($489/mo for small team)
• Sanity ($99/mo for team)

Documentation Platforms:

• GitBook ($8-$12/user/mo)
• ReadMe ($79/mo base)
• Docusaurus (Free, self-hosted)

Website Builders:

• Webflow ($14-$49/mo)
• Wix ($14-$49/mo)
• Squarespace ($12-$40/mo)

The pricing is positioned to reflect the unique value as a specialized React-native content system while remaining competitive with general-purpose alternatives.

Customer Segment Pricing Sensitivity

Individual Developers:

• Price-sensitive, often prefer free options
• Value personal productivity improvements
• Sweet spot: $0-25/month range

Small Teams:

• Value collaboration and time savings
• Compare against other developer tools
• Sweet spot: $50-100/month range

Mid-size Companies:

• Value reliability and support
• ROI-focused decision making
• Sweet spot: $100-500/month range

Enterprises:

• Value security, compliance, and integration
• Less price-sensitive, more feature-focused
• Sweet spot: $500+/month range

Customer Acquisition Cost Considerations

Target CAC by Segment:

• Individual: $50-100 (2-5 month payback)
• Team: $200-400 (4-8 month payback)
• Business: $600-1200 (4-8 month payback)
• Enterprise: $2000-5000 (4-10 month payback)

CAC Recovery Strategies:

• Annual billing discounts (2 months free)
• Longer contract terms for enterprise
• Efficient self-service onboarding
• Community-driven acquisition

Implementation Timeline

Phase 1: Foundation (0-6 months)

• Launch open source core
• Build community around free offering
• Test pricing concepts with early adopters

Phase 2: Initial Monetization (6-12 months)

• Launch Pro tier ($19/mo)
• Limited beta of Team tier
• Validate willingness to pay

Phase 3: Team Expansion (12-18 months)

• Full launch of Team tier ($49/mo)
• Launch Business tier ($149/mo)
• Begin marketplace development

Phase 4: Enterprise & Marketplace (18+ months)

• Launch Enterprise tier ($499+/mo)
• Open component marketplace
• Introduce professional services

Pricing Experiment Framework

Pricing will be continuously optimized using controlled experiments:

1. Value Metric Testing:

   • Test different usage limits (users, content items, etc.)
   • Measure impact on conversion and usage

2. Packaging Experiments:

   • Test feature bundling variations
   • A/B test different tier structures

3. Price Sensitivity Analysis:

   • Conduct Van Westendorp price sensitivity surveys
   • Test price points with limited segments

4. Promotional Strategies:

   • Test different discount structures
   • Evaluate lifetime deals vs. subscriptions

Conclusion

This pricing strategy aims to build a sustainable business by balancing accessibility for individual developers with value capture from team and enterprise customers. The multi-tiered approach provides clear growth paths for customers as their needs evolve, while the open core foundation ensures the project remains viable and community-driven.

As the product evolves, pricing will be regularly reassessed based on customer feedback, competitive positioning, and observed value delivery.