Freemium and the Enterprise - Proceed with Caution Slides from Freemium Summit 2010

Freemium & The Enterprise - Proceed with Caution

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Freemium is a Marketing Tactic not a Business Model

Marketing should align with your market, right?

How does your market feel about free?

Consumer-oriented Customer Acquisition Techniques

Businesses are DIFFERENT than consumers... ...and that is a good thing!

Businesses have more MONEY than TIME

Mo’ Money, Mo’ Problems Problems Money

The best idea: Solve a real business problem & charge money for it

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

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)

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

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

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!

The Wrong Kind of Traction http://www.accesshealth.com.au

“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

Where does Freemium work? Wide-Band Horizontal (HCM, ERP) Narrow-Band Horizontal (Box.net, Yammer, Xobni) Vertical Speciﬁc - Wide or Narrow

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

Freemium Methods that Work? Alternative Land & Product Expand Strategy

The best idea: Solve a real business problem & charge money for it

New Pricing & Revenue Modeling Programs coming in April

Contact Info Lincoln Murphy http://sixteenventures.com lincoln@sixteenventures.com @lincolnmurphy (972) 200-9317

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Freemium and the Enterprise - Proceed with Caution Slides from Freemium Summit 2010

by Lincoln Murphy on Mar 26, 2010

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