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

1. Freemium & The Enterprise -
Proceed with Caution

2. We help web companies make print money

4. Have you read this? If not, get your copy today!

5. Freemium is a Marketing Tactic
not a Business Model

6. Marketing should align with your market, right?

7. How does your market feel about free?

8. Consumer-oriented Customer Acquisition Techniques

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

10. Businesses have more MONEY than TIME

11. Mo’ Money, Mo’ Problems
Problems
Money

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

13. 3%

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

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)

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
3% (conversion to paid) 135

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
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

18. 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!

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

20. “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

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

22. 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

23. Freemium Methods that Work?
Alternative
Land &
Product
Expand
Strategy

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

25. New Pricing & Revenue
Modeling Programs coming
in April

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