Every week Neel Desai (product at ProfitWell) brings a new set of benchmarks from the world’s largest recurring revenue data set in the world, to answer questions like "will all software become freemium?" and "how much expansion revenue is healthy?"
The ProfitWell folks are back at it again. With this video series full of benchmarks. 3 minute videos, full of useful SaaS insights. What more could you ask for?
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Hey Neel, our freemium posts have done really well, and there is definitely an expanding market for freemium, but we know not all companies should offer a freemium product. Do you have plans to create an episode on freemium failures and the characteristics of a company that should not have a freemium product?
@robbylit Totally - while it's a fantastic acquisition strategy, it's not for everyone. We'll take a deeper dive into what market conditions lend itself well to Freemium and when one might want to avoid it!
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Do you ever find that the data you’re gathering creates more questions than what you’re trying to answer?
@mary_mallard yea this is pretty much how it works. Answers beget more questions as you go deeper and deeper down the research rabbit hole. :)
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Love the content!! What’s your threshold for the number of data points in any given study? I’ve notice it fluctuates with each report - wondering if there’s a minimum amount you use.
@eileen_lent this is a great question, because statistical significance isn't a specific number (measure of variance) and all data has limits. We try to be exceptionally intellectually honest with the data we publish, making sure things are always as transparent as possible. As such, there isn't necessarily a minimum (although we likely wouldn't publish something lower than 100 data points).
Love last season’s episode on Freemium. It’s incredible how CAC has increased by almost 70% over the last 5 years. Patrick/Neel, where do you see that trending in the next 5 years?
@ian_black1 As software becomes even *easier* to build, it's likely this will continue to go even higher. Crazy to think about, but the density in the market right now is just crazy and it's becoming harder and harder to stand out among the many options customers have and attract customers. Why we think more folks will experiment with Freemium :)
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If you're a SaaS founder, you need to check this out
Pros:
Consise, usable data
Cons:
no cons
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Love when these show up in my inbox! The data is very tactical and we consistently use it to re-enforce the important of monetization with our clients.
Crazy Egg
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ProfitWell
If you're a SaaS founder, you need to check this out
Pros:Consise, usable data
Cons:no cons