Making Freemium Work

(notes to self)

• Example of freemium successful company: Skype, Linkedin, Dropbox,… they are all consumer services with potentially millions of users.
• Freemium in Enterprise ? Sharepoint is an example.
• Convertion rate from free to premium: 2% (to be checked)
• Benefits of freemium: let the user understand product benefit and benefit from the network effect to get more people in.
• Any feature that has some “virality” should be included into the free plan
• User optimizes for the “least surprising” bill vs. optimizing for overall smallest bill (carrier plan as an example). People are scared of what they do not know.
• Original pricing is likely to be wrong, need to be flexible at the beginning to adapt to the customers
• Daily/monthly metrics is important. Collect analytics on the users (incl. unsubscribers) is critical. Get it working before launching