19. That's our go to market...
What have we learned
about freemium?
20. Focus on 3 topics
1. Why we like freemium
2. Freemium's impact on direct sales
3. Freemium's impact on channel/ecosystem,
including 2 case studies
21. We like freemium because...
entered mature, premium market --> help disrupt
large addressable market --> upsell math works
existing, free consumers --> product & support leverage
our apps have network effects --> lower marketing costs
students graduate --> bring expectations to work
we know ads --> additional revenue stream
broad product --> opportunity for differentiation, add-ons
23. Freemium: impact on direct sales
3 Sales Teams
--------------------
Field sales: > 3k users
Telesales: 100 - 3k users
Online sales: 1 - 100 users
Freemium works because...
user cap on free --> limits conflict with sales teams
big diverse customer base --> more oppty to sell add-ons
self-service DNA --> pilots are easier/cheaper
A challenge
online sales team competes with free
24. 1. Revenue layer cake
Think "use as directed for best results"
FREEMIUM:
Small biz
& EDU only
http://www.flickr.com/photos/rapo/2373988909 CC-BY
25. Freemium: impact on ecosystem
VARs Apps Marketplace
------------ ---------------------------
20% discount to VAR 20% revshare to Google
Freemium works because...
larger customer base --> more "air cover"
--> grows appetite for consulting, apps
more cloud-savvy user --> better conversion rates
A challenge
$50/user/year --> pressure on ecosystem prices
26. 1. Revenue layer cake
2. Use as directed for best results
Think "helps build multiple channels"
30. 1. Create a revenue layer cake
2. Use as directed for best results
3. Helps build multiple channels
Think "You'll find new ways to use it"
31. Summary: freemium helped us scale
1. Create a revenue layer cake
(core, add-ons, ads, ecosystem)
2. Use as directed for best results
(right size, right segment)
3. Helps build multiple channels
(sales teams, vars, isvs)
4. You'll find new ways to use it
(awareness, preferences, ecosystem)