Freemium ain't new. It's just a new word. (Freemium Summit Presentation, Matt Brezina, Xobni)
Upcoming SlideShare
Loading in...5
×
 

Like this? Share it with your network

Share

Freemium ain't new. It's just a new word. (Freemium Summit Presentation, Matt Brezina, Xobni)

on

  • 17,152 views

This is a slide deck I presented at Freemium Summit on March 26, 2010. An exploration of existing freemium businesses, business/market conditions where freemium can make sense, and finally some ...

This is a slide deck I presented at Freemium Summit on March 26, 2010. An exploration of existing freemium businesses, business/market conditions where freemium can make sense, and finally some lessons learned from xobni

Statistics

Views

Total Views
17,152
Views on SlideShare
11,659
Embed Views
5,493

Actions

Likes
54
Downloads
504
Comments
0

17 Embeds 5,493

http://www.mattbrezina.com 4933
http://www.freemium.org 312
http://zorian.com 81
http://www.socmedevanger.com 41
http://www.justinpirie.com 28
http://www.slideshare.net 27
http://www.bagtheweb.com 26
http://localhost.bagtheweb.com 10
http://www.brasilitplus.com 10
http://php5.lecom.com.br 9
http://bagtheweb.com 5
http://bings-macbook-pro.local 4
http://translate.googleusercontent.com 2
http://webcache.googleusercontent.com 2
http://socmedevanger.blogspot.com 1
http://www.bing.com 1
http://cdaniels.symbaloo.com 1
More...

Accessibility

Categories

Upload Details

Uploaded via as Apple Keynote

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • <br />
  • <br />
  • <br />
  • <br />
  • <br />
  • $9M operating budget <br /> 1.3 from tea gardens <br /> 400k from gold course <br />
  • $9M operating budget <br /> 1.3 from tea gardens <br /> 400k from gold course <br />
  • $9M operating budget <br /> 1.3 from tea gardens <br /> 400k from gold course <br />
  • <br />
  • <br />
  • <br />
  • <br />
  • <br />
  • <br />
  • <br />
  • <br />
  • <br />
  • <br />
  • <br />
  • <br />
  • <br />
  • <br />
  • <br />
  • <br />
  • <br />
  • <br />
  • <br />
  • <br />
  • <br />
  • <br />
  • <br />
  • <br />
  • we planned freemium from day 1. We said, let&#x2019;s us go out and solve a problem for all of these really really valuable business users. And we&#x2019;ll sell them a lot of stuff in the future <br />
  • we planned freemium from day 1. We said, let&#x2019;s us go out and solve a problem for all of these really really valuable business users. And we&#x2019;ll sell them a lot of stuff in the future <br />
  • we planned freemium from day 1. We said, let&#x2019;s us go out and solve a problem for all of these really really valuable business users. And we&#x2019;ll sell them a lot of stuff in the future <br />
  • we planned freemium from day 1. We said, let&#x2019;s us go out and solve a problem for all of these really really valuable business users. And we&#x2019;ll sell them a lot of stuff in the future <br />
  • we planned freemium from day 1. We said, let&#x2019;s us go out and solve a problem for all of these really really valuable business users. And we&#x2019;ll sell them a lot of stuff in the future <br />
  • <br />
  • <br />
  • <br />
  • <br />
  • <br />
  • <br />
  • <br />
  • <br />
  • <br />
  • tod sacerdoti <br /> made a competition in the company to guess the order of top upsells <br />
  • <br />
  • <br />
  • <br />
  • <br />
  • <br />
  • <br />
  • <br />
  • andrew chen&#x2019;s blog list of things to a/b test. I&#x201D;ll be adding to his list on my own blog shortly. <br /> <br /> YOu are doing such high volumes of impressions, it is probably more important in freemium than anywhere else <br />
  • <br />
  • <br />
  • <br />
  • <br />
  • <br />
  • dan airely example of duke basketball tickets. 15x difference in value. <br />
  • <br />
  • <br />
  • <br />

Freemium ain't new. It's just a new word. (Freemium Summit Presentation, Matt Brezina, Xobni) Presentation Transcript

  • 1. Freemium ain’t new It’s just a new word Matt Brezina Co-founder, Xobni Twitter: @brezina mattbrezina@gmail.com
  • 2. efax (J2 Com) 1B market cap • 9,9M free users • 1.2M premium users
  • 3. Skype 1.9B market cap efax (J2 Com) 1B market cap • 27B free min • 9,9M free users • 3.1B premium min • 1.2M premium users
  • 4. Skype 1.9B market cap efax (J2 Com) 1B market cap • 27B free min • 9,9M free users • 3.1B premium min • 1.2M premium users LogMeIn 450M market cap • 300k premium users • 27M total registered users
  • 5. 10:1
  • 6. $
  • 7. $ $
  • 8. $ $ $
  • 9. Free - the most powerful word in marketing
  • 10. Free - the most powerful word in marketing • Freemium is a marketing strategy
  • 11. Free - the most powerful word in marketing • Freemium is a marketing strategy • Powerful because of the “penny gap.”
  • 12. 1. Is freemium right for my business?
  • 13. 1. Is freemium right for my business? 2. If it is, how do I make it successful (lessons learned from Xobni)
  • 14. If you make software, you can make money in four ways If you sell software to a business, they don’t want you to make money the last two ways
  • 15. If you make software, you can make money in four ways • Sell your stuff (Premium only) If you sell software to a business, they don’t want you to make money the last two ways
  • 16. If you make software, you can make money in four ways • Sell your stuff (Premium only) • Sell your stuff to some of your users (Freemium) If you sell software to a business, they don’t want you to make money the last two ways
  • 17. If you make software, you can make money in four ways • Sell your stuff (Premium only) • Sell your stuff to some of your users (Freemium) • Sell other companies’ stuff (Advertising) If you sell software to a business, they don’t want you to make money the last two ways
  • 18. If you make software, you can make money in four ways • Sell your stuff (Premium only) • Sell your stuff to some of your users (Freemium) • Sell other companies’ stuff (Advertising) • Sell users’ stuff (Data marketplace) If you sell software to a business, they don’t want you to make money the last two ways
  • 19. If you make software, you can make money in four ways • Sell your stuff (Premium only) • Sell your stuff to some of your users (Freemium) • Sell other companies’ stuff (Advertising) • Sell users’ stuff (Data marketplace) If you sell software to a business, they don’t want you to make money the last two ways
  • 20. If you make software, you can make money in four ways • Sell your stuff (Premium only) • Sell your stuff to some of your users (Freemium) • Sell other companies’ stuff (Advertising) • Sell users’ stuff (Data marketplace) If you sell software to a business, they don’t want you to make money the last two ways
  • 21. Is freemium right for my business? (let’s narrow discussion to freemium vs. premium only)
  • 22. When freemium makes more sense than premium-only
  • 23. When freemium makes more sense than premium-only ✓ A channel for buying users doesn’t exist
  • 24. When freemium makes more sense than premium-only ✓ A channel for buying users doesn’t exist ✓ Corollary: channels for buying users are too expensive
  • 25. When freemium makes more sense than premium-only ✓ A channel for buying users doesn’t exist ✓ Corollary: channels for buying users are too expensive ✓ Premium-only competitor is creating demand
  • 26. When freemium makes more sense than premium-only ✓ A channel for buying users doesn’t exist ✓ Corollary: channels for buying users are too expensive ✓ Premium-only competitor is creating demand ✓ Your product has (or needs) network effects
  • 27. When freemium makes more sense than premium-only ✓ A channel for buying users doesn’t exist ✓ Corollary: channels for buying users are too expensive ✓ Premium-only competitor is creating demand ✓ Your product has (or needs) network effects ✓ Cost to offer free service isn’t too high
  • 28. When freemium makes more sense than premium-only ✓ A channel for buying users doesn’t exist ✓ Corollary: channels for buying users are too expensive ✓ Premium-only competitor is creating demand ✓ Your product has (or needs) network effects ✓ Cost to offer free service isn’t too high ✓ You can get $ to build free product
  • 29. How to make freemium a success (lessons learned from Xobni)
  • 30. How to make freemium a success (lessons learned from Xobni) Paul Buchheit: advice = limited life experience + overgeneralization
  • 31. Why did we go freemium with Xobni?
  • 32. Why did we go freemium withwith Xobni? Why did we go freemium Xobni?
  • 33. Why did we go freemium withwith Xobni? Why did we go freemium Xobni? ✓ Good virality on communication platform
  • 34. Why did we go freemium withwith Xobni? Why did we go freemium Xobni? ✓ Good virality on communication platform ✓ No existing cheap paths to buy Outlook users
  • 35. Why did we go freemium withwith Xobni? Why did we go freemium Xobni? ✓ Good virality on communication platform ✓ No existing cheap paths to buy Outlook users ✓ Low marginal cost per user
  • 36. Why did we go freemium withwith Xobni? Why did we go freemium Xobni? ✓ Good virality on communication platform ✓ No existing cheap paths to buy Outlook users ✓ Low marginal cost per user ✓ Access to VC funds
  • 37. Why did we go freemium withwith Xobni? Why did we go freemium Xobni? ✓ Good virality on communication platform ✓ No existing cheap paths to buy Outlook users ✓ Low marginal cost per user ✓ Access to VC funds ✓ We didn’t want to sell enterprise software
  • 38. Xobni Plus
  • 39. Xobni Plus Xobni for Blackberry
  • 40. Xobni Plus Xobni for Blackberry Xobni One
  • 41. Xobni Plus Xobni for Blackberry Xobni Enterprise Xobni One
  • 42. Xobni Free for Outlook
  • 43. Xobni Free for Outlook
  • 44. Free Premium Xobni Free for Outlook
  • 45. Free Premium Xobni Plus Xobni Free $29.95 for Outlook
  • 46. Free Premium Xobni Plus Xobni Free $29.95 for Outlook Xobni Enterprise $36/user/yr
  • 47. Free Premium Xobni Blackberry $9.99 Xobni Plus Xobni Free $29.95 for Outlook Xobni Enterprise $36/user/yr
  • 48. Free Premium Xobni Blackberry $9.99 Xobni One $3.99/mo Xobni Plus Xobni Free $29.95 for Outlook Xobni Enterprise $36/user/yr
  • 49. Free Premium Xobni Blackberry $9.99 Xobni One $3.99/mo New mobile & email Xobni platforms Plus Xobni Free $29.95 for Outlook Xobni Enterprise $36/user/yr
  • 50. 8 Lessons learned in building Xobni’s freemium business
  • 51. 1. Survey! One huge advantage of free - you’ve got a lot of users to talk to Decisions we made because we understood our users: • Deployed by IT? Our policy doesn’t allow deployment without Xobni Enterprise • One or multiple computers? Extra Xobni plus licenses are $9.95
  • 52. 2. Start with more in-product upsells than you are comfortable with • See what users are clicking on • Determine which upsells convert to sales • Improve or remove
  • 53. Over 14 in-product upsells
  • 54. 3. Tease with data Show the user what they are missing from your premium product
  • 55. Why should I click that button?
  • 56. Tease with data Text
  • 57. 4. Tie message to the user’s action If the user tells you he wants apples, don’t sell oranges
  • 58. I clicked Video So, sell me video!
  • 59. User clicks on autosuggest We sell them autosuggest
  • 60. 5. Obviously, A/B test • High volume in freemium businesses makes a/b testing more important than ever • We got 50% improvement in premium conversion by a/b testing our in-product upsells and messages
  • 61. 25% improvement on this upsell
  • 62. 6. Not all channels are created equal (and that can be okay)
  • 63. 7. Users conditioned to free product convert poorly to premium • Existing free users converted poorly when we launched premium • New users that only see Xobni Free when installing convert poorly
  • 64. Users that see a homepage with only our free product
  • 65. Convert to premium more poorly than users who see both free and premium initially
  • 66. 8. Free trials are the freemium business’s best friend Cost of losing X is perceived higher than the value of gaining X
  • 67. 1B market cap 1.9B market cap 450M market cap
  • 68. 1B market cap 1.9B market cap 450M market cap Time will tell...
  • 69. Freemium ain’t new It’s just a new word Matt Brezina Co-founder, Xobni Twitter: @brezina mattbrezina@gmail.com