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Minor point, but the author says about Clerk that they’d glady pay 1% of revenue for a polished auth solution.

That might be true for a side project, but that would be an absurd figure for an established company. Can you imagine a company with $100M revenue paying Clerk $1M a year? I’d find that deeply concerning.



While I'd agree that $1M is a lot, it's not altogether that crazy. (Full candor: we are ourselves a managed auth company, so I naturally have a vested interest in people wanting to pay for auth)

We could start by drawing an analogy to another vendor: Stripe. Our company pays much more than 1% of gross sales to Stripe for handling our payments. I wince a little every time I see our revenue leaking out to them, but I also don't have a great alternative. It's basically fine, and it's just the cost of doing business.

Relatedly, if you're a $100M business, what alternatives do you have to Clerk (or equivalent vendors)? One option would be to run auth in-house. If you do that, you pretty quickly hit $1M in headcount costs alone by staffing ~3 engineers + ~1 product manager to build and maintain an auth service. (Bear in mind that the fully-loaded cost of a hire vastly exceeds base salary). I don't think many CFOs are going to lose sleep over the cost/benefit here.

And in practice, that's exactly where a lot of companies land. Lots of companies pay Auth0 seven figures annually. It's expensive, but it's still a pretty good deal for some companies.


Cofounder of Clerk. I agree - our pricing has been significantly reduced since this was written (partially in response to this post)

We do intend to build more products, but if you're using us for pureplay auth we shouldn't cost 1% of revenue at scale.

(As far as I know, we don't cost 1% at any scale, except very early startup days pre-revenue who opt not to use our free plan.)




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