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

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