When remote work broke corporate VPN access for NBR's "all you can eat" IP licenses, the company seized the opportunity. It pivoted to per-seat group subscriptions, gaining more control over revenue and scalability, while competitors who later adopted the old IP model got stuck with it.

Related Insights

When pivoting from a product with existing revenue, avoid the binary choice of killing it or splitting focus. Blue Jay successfully transitioned by putting their V1 product into "maintenance mode"—servicing existing customers but halting all new feature development—and committing the entire team to building the V2 for a defined six-month period.

Faced with resource-heavy US competitors in the direct market, uSecure identified the Managed Service Provider (MSP) channel as an underserved green space. They executed a hard pivot, rebuilding their product and licensing specifically for MSPs, which created a key differentiator that fueled their growth.

Deliver's growth stagnated until they shifted from complex, variable fees to a simple flat rate. This treated pricing not as a billing model but as a product feature that solved the customer's core need for financial predictability, which became their primary growth catalyst.

Accel Events thrived by pivoting to a virtual events platform during COVID. However, this new reputation hurt them when the market returned to in-person events. They were no longer seen as a viable in-person solution, forcing another costly product and brand rebuild to recapture their original market.

Traditional SaaS companies are trapped by their per-seat pricing model. Their own AI agents, if successful, would reduce the number of human seats needed, cannibalizing their core revenue. AI-native startups exploit this by using value-based pricing (e.g., tasks completed), aligning their success with customer automation goals.

Assembled launched with usage-based pricing and no minimums. When the pandemic hit, customers scaled usage to zero, and revenue flatlined. The team initially blamed their product, only later realizing their pricing model made them vulnerable to customers' cost-cutting measures, independent of product value.

When COVID-19 invalidated its revenue plan, Nextdoor's GM used a pre-existing worst-case scenario to pivot the product strategy. The focus shifted from subscriptions to features that provided immediate cash flow to local businesses (e.g., gift cards), enabling a quick, board-aligned response to the crisis.

Business model innovation is a third, often-overlooked pillar of success alongside product and go-to-market. A novel business model can unlock better unit economics, align incentives with customers, and dictate the entire product and operational strategy.

Instead of maximizing ad slots, NBR removed all online ad inventory except the top banner. It then pitched a premium, simplified package to top clients for a high monthly fee, creating artificial scarcity and focusing on high-value partnerships. This secured over $1M in pre-sold, recurring revenue.