PostHog · Strategy · Senior · 45 to 60 minutes

Should PostHog reprice anonymous events?

PostHog is a product analytics and developer tools company that helps teams collect data about how people use websites and apps. Answer this product management case and get it graded line by line against a weighted rubric.

pricing strategy
market expansion
tradeoff analysis
segmentation
execution planning

The situation

You are a senior PM responsible for the product analytics business line at PostHog. The CEO and finance lead want a recommendation for the next pricing cycle. A recurring theme from prospects and customers is that high volume anonymous traffic, such as page views and pre signup behavior, can get expensive to track at scale, which may limit web analytics style use cases and make some teams send less data or use a different tool for that part of their stack. At the same time, anonymous events still contribute real revenue today, and any broad price cut could reduce near term revenue from product analytics and create pressure from the board and from teams with quarterly targets. Assume anonymous events are a meaningful share of analytics volume, and a lower price could reduce next year product analytics revenue by about 20 to 30 percent if usage patterns do not expand. Leadership wants to know whether pricing should change, how to avoid simply discounting existing value, and how to protect higher value analytics use cases from cannibalization.

What to produce

Write a 1 to 2 page strategy memo for the leadership team.

Your answer must

State your recommendation on anonymous event pricing and the goal it is meant to achieve.
Segment the main use cases or event types, and explain which should be cheaper, protected, or unchanged, and why.
Model at least two plausible outcomes, including a downside case and an upside case, with the key assumptions that drive each.
Identify the main second order effects on customer behavior, revenue mix, product positioning, and operational costs or abuse risk.
Propose a rollout and measurement plan for the first 2 quarters, including guardrails and a decision point for whether to continue, adjust, or reverse.

Constraints

Work only from the context above, do not assume undisclosed market share, cost structure, or competitor pricing.
You cannot depend on launching a brand new product line to make the strategy work.
Any recommendation should be understandable to both self serve customers and sales led prospects.
You should preserve customer trust and avoid a pricing change that feels arbitrary or hard to explain.

Format

Use clear headers, short bullets, and one simple table for scenarios or segmentation.

How PostHog actually played it

PostHog cut the price of anonymous events by up to 80 percent while openly forecasting about a 30 percent drop in product analytics revenue. The post explains the bet that cheaper high volume tracking unlocks web analytics at scale and new use cases. A good case on deliberately trading short term revenue for a larger market.

Say the expected revenue hit out loud when a price cut is a strategic bet
Price changes can open entire new use cases, not just discount existing ones
Segment event types so cheap volume does not cannibalize high value usage

Built from We've decided to make less money [Part 2] by James Hawkins.