Freemium Meetup November 2012 - David Weekly
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Freemium Meetup November 2012 - David Weekly

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Freemium Meetup November 2012 - David Weekly Freemium Meetup November 2012 - David Weekly Presentation Transcript

  • Baking DoughFreemium Lessons from the Real World David Weekly @ SF Freemium June 14, 2012
  • PBwiki PBworks• June 2005: First private wiki host! Free+ads.• July: $5/mo -> NO ADS (unlimited users)• 2006: $5/10/20 a month• 2007: $10/20/35 a month• 2008: $20/user/mo (unlimited wikis)• 2010: $20-50/user/mo [verticalized]
  • PBlearnings• A la carte pricing confusing/complex.• “Principle of Least Surprise”, adapt w/users.• When cheap, 100% self-service• Consumer-to-enterprise = hard!• ...but tool-to-solution = >100x $$$
  • Key Thresholds• $5: impulse consumer buy• $50: prosumer purchase• $500: casual business tool• $5k: serious business tool• $50k: partial solution• $500k strategic solution
  • Conversion Rates• Expect 1-5% for consumer freemium.• Evernote: can take a long time to get to 5%!• Accumulate unique data (notes, wishlists, travel history, etc.) for longterm value.
  • Get Baked!• Retention: LTCV++• Sharing: CAC--• Success: CAC < LTCV• Person: become a ritual (for a group)• Company: become a key (team) process
  • Conflicting Lessons• Enterprise solutions pay well, but...• Consumer: wider audience than ever!• BillUser() call in all OS APIs, soon.• Consumerization of the enterprise
  • Clear Lessons• Ad inventory on mobile is atrocious.• Exactly where payment APIs are strongest.• In-app purchase is dominating.• Ads overall are a poor user experience, conflicting with what the user wants.
  • So• Beware ads. (other than as a stick to encourage people to upgrade)• Retain data.• Make purchase easy.• Encourage sharing.• Be useful!