Lincoln Murphy Sixteen Ventures

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Lincoln Murphy Sixteen Ventures

  1. 1. Freemium & The Enterprise - Proceed with Caution
  2. 2. We help web companies make print money
  3. 3. Have you read this? If not, get your copy today!
  4. 4. Freemium is a Marketing Tactic not a Business Model
  5. 5. Marketing should align with your market, right?
  6. 6. How does your market feel about free?
  7. 7. Consumer-oriented Customer Acquisition Techniques
  8. 8. Businesses are DIFFERENT than consumers... ...and that is a good thing!
  9. 9. Businesses have more MONEY than TIME
  10. 10. Mo’ Money, Mo’ Problems Problems Money
  11. 11. The best idea: Solve a real business problem & charge money for it
  12. 12. 3%
  13. 13. Back of the Napkin Math - Is Freemium even possible in our market? Addressable Market x Reach % x Sign-up % x 3% = Potential Paying Customers from Freemium
  14. 14. Back of the Napkin Math - Is Freemium even possible in our market? Addressable Market x Reach % x Sign-up % x 3% = Potential Paying Customers from Freemium Health Clubs in the US x 30,000 30% (reach) x 9,000 50% (sign-up) x 4,500 3% (conversion to paid)
  15. 15. Back of the Napkin Math - Is Freemium even possible in our market? Addressable Market x Reach % x Sign-up % x 3% = Potential Paying Customers from Freemium Health Clubs in the US x 30,000 30% (reach) x 9,000 50% (sign-up) x 4,500 3% (conversion to paid) 135
  16. 16. Back of the Napkin Math - Is Freemium even possible in our market? Addressable Market x Reach % x Sign-up % x 3% = Potential Paying Customers from Freemium Health Clubs in the US x 30,000 30% (reach) x 9,000 50% (sign-up) x 4,500 et ing 3% (conversion to paid) 135 ark s! M op St Most companies just Lay & Pray
  17. 17. Back of the Napkin Math - Is Freemium even possible in our market? Addressable Market x Reach % x Sign-up % x 3% = Potential Paying Customers from Freemium Health Clubs in the US x 30,000 ro ng 30% (reach) x 9,000 W rs Use 50% (sign-up) x 4,500 3% (conversion to paid) 135 Beware False Traction!
  18. 18. The Wrong Kind of Traction http://www.accesshealth.com.au
  19. 19. “The long and the short of it is that we got a ton of Freemium users, but they were mostly not customer prospects.” - Bob Warfield http://smoothspan.wordpress.com/2010/03/25/freemiums-for-saas/ Attract the RIGHT KIND of users
  20. 20. Where does Freemium work? Wide-Band Horizontal (HCM, ERP) Narrow-Band Horizontal (Box.net, Yammer, Xobni) Vertical Specific - Wide or Narrow
  21. 21. Where does Freemium work? Wide-Band Horizontal (HCM, ERP) Narrow-Band Horizontal (Box.net, Yammer, Xobni) Vertical Specific - Wide or Narrow That’s why they’re here & not the other types
  22. 22. Freemium Methods that Work? Alternative Land & Product Expand Strategy
  23. 23. The best idea: Solve a real business problem & charge money for it
  24. 24. New Pricing & Revenue Modeling Programs coming in April
  25. 25. Contact Info Lincoln Murphy http://sixteenventures.com lincoln@sixteenventures.com @lincolnmurphy (972) 200-9317

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