Freemium model questions.
Dawn Veltri
14 replies
For those with a freemium model. Where is the balance between offering enough, so they can get a good feel for the product, and not offering too much that they have no incentive to upgrade.
Offer everything with a time frame? Offer everything to a certain threshold, i.e. a certain number of whatever your product provides? Offer a very limited version? What has worked best for your startup? What hasn’t worked?
Replies
Elena Cirera@deleted-3924137
I think it should be easy for a customer to switch from freemium to a paid product; there should be less price and many payment options. It should be easy and economical for a customer to switch from freemium to paid product or service.
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Hi @dawn_veltri1, I replying to your post because I help small business owners with pricing strategies for their services and/or products. The latter includes SaaS which may include a freemium offering at the start.
What is appropriate for you depends on your key objective of offering freemium. For example, is your product novel or can be considered disruptive based on the problem(s) solved with your product? If yes, then a freemium model is suitable if you're looking to acquire many users of your product as part of a plan to acquire market share.
If however your product is similar to current products on the market and you're clear about what makes your product better than other products already on the market, then freemium based on a limited (BETA) vesion may be a better option.
Hope this is helpful. If not feel free to message me here or DM on Instagram (instagram/bizcoachuk).
@dawn_veltri1, you're welcome! To ensure you also avoid 8 common pricing mistakes made by business owners, you can checkout my free to download ebook on this topic: https://bit.ly/3z5EoZr
Best for the holidays.
We'll be going with a freemium model offering the basic services for free all the time. We then intend to have some time based promotions for upgrades to try and convert the free users.
@maxwellcdavis We're thinking the same. Our free plan offers 10 website visitor identifications a month. I go back and forth over whether that is enough or not.
That's an interesting question. I think it boils down to what your product is about, but generally speaking, I would say offering everything within a timeframe is just a Free Trial, while Freemium, in my opinion, would be offering some of the features / all of the features with some limitations.
@lior_galante_cohen, agree with limited timeframe being 'trial'. In essence the 'trial' can be viewed as an 'introductory' offer, not the same as freemium (premium quality for free).
Not stating when the offer (free or low priced) is introductory is one of the common mistakes made by entrepreneurs when setting prices for products or services. Over the years, I've highlighted some of the common pricing mistakes in a free ebook available for download from: https://bit.ly/3z5EoZr
@veronicab Thanks for sharing, Veronica! I'll check it out.
Great question.