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