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He deleted $113,094 of ARR. One of those tiers had only happy members.

Jay Clouse cut $113,094 of annual recurring revenue from his membership on purpose: 106 Basic subscriptions cancelled, 24 VIPs downgraded. Basic was churning. VIP had nothing but positive feedback and went anyway. That second decision is the one worth stealing.

Makersclaw — Startup Blogs — $113,094

$113,094 in annual recurring revenue, removed on purpose. 106 Basic subscriptions cancelled. 24 VIP members downgraded to the tier below them. Jay Clouse says he personally cancelled more than 100 subscriptions, and that the total was larger than the salary of any job he has ever held.

Creator Science's membership, The Lab, had three tiers. It now has one.

Two tiers went, for opposite reasons. Basic was churning. VIP members, in his words, "had nothing but positive things to say" — and VIP went too.

Most posts about pricing tiers explain how to add them. This one goes the other way.

The cheap tier was arguing against the expensive one

Basic churning was not the surprise. The reason was.

Clouse hired Kat Vellos to interview long-time happy members alongside people who had gone quiet, and had the findings back anonymised and in aggregate. The Basic forum was quiet while the Standard forum was busy. Members wanted educational material that did not exist yet. Basic was a worse version of the product, not a smaller one.

That creates a failure most founders never think to look for. A cheap tier is supposed to be the on-ramp: someone tries it, likes it, upgrades. Basic gave people a false negative instead. If the cheaper tier has a quiet forum and thin material, why would anyone believe the tier above it is better? The entry product was making the case against upgrading.

So the first question is not whether your cheapest tier churns. It is whether the people who leave it believe the tier above is any different. If they do not, that tier is not an on-ramp. It is a preview that talks customers out of the thing you actually want to sell.

The real bottleneck was named out loud

VIP was coaching, coaching took his calendar, and his calendar was the constraint. Clouse puts it plainly: "in order to prioritize making content, I need to spend less time coaching."

Behind that is his own capacity, with paternity leave arriving at the end of October. A membership where the founder is the delivery mechanism has a ceiling, and in this case the ceiling arrived on a date.

This is where the cut stops being about pricing. Trimming a few hours will not fix founder-as-bottleneck. Every tier that consumed his time had to justify itself against the content he was not making, and VIP lost that comparison despite the reviews.

The replacement design goes after the bottleneck rather than chasing back the revenue:

  • Facilitators staffed onto the mastermind groups. The masterminds were excellent when they worked and drove members away when they did not. Clouse's answer to that inconsistency is people, not a new format.
  • A monthly rhythm for setting goals and running experiments, so the membership has a cadence that does not depend on him.
  • A monthly new-member welcome call, with new members batched into one monthly intake.
  • Custom software to bring back 1:1 member introductions, the thing that does not scale, rebuilt so it does.

The expensive half nobody copies

The members of the retired tiers were not dropped. Existing Basic members are supported through July 2027. Every VIP keeps their coaching through the end of the year they already paid for. His own framing: almost a full year of support for tiers he has already retired.

So the cancelled Basic members keep what they had without paying for it, and the downgraded VIPs keep their coaching while paying the Standard price. That is almost a year of delivering two products he has already decided are wrong, at a price he has already written off. The cut is a business decision. The support runway is what keeps it from becoming a broken promise. Founders who make the first move and skip the second get the savings and lose the audience.

What to actually take from this

Two things, on top of the on-ramp test above:

  1. Cost your tiers in founder-hours, not just revenue. The measure VIP failed was never visible to the people paying for it. Those are separate books, and only one of them was being kept.
  2. If you prune, honour the terms first. Support the people you are cutting for as long as they reasonably expected, then cut.

Grape growers prune the weaker branches so the stronger ones bear better fruit. Clouse reaches for that image himself. The weak-branch version of this decision is easy, and nobody needs a post about it. The hard version is standing over a tier full of happy members and cutting it because it spends the one resource the business cannot buy more of.

The Lab is a single-tier product again while the new top and bottom get rebuilt. First new members since June.

Sachin SharmaPublished 31 Aug 2026 · updated 8 Sept 2026

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