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

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"Freemium and the Enterprise - Proceed with Caution" presentation slides from the Freemium Summit in San Francisco, CA on March 26, 2010.

"Freemium and the Enterprise - Proceed with Caution" presentation slides from the Freemium Summit in San Francisco, CA on March 26, 2010.

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

  • Freemium & The Enterprise - Proceed with Caution
  • We help web companies make print money
  • Have you read this? If not, get your copy today!
  • 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
  • 3%
  • 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