From Free to Freemium
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The document discusses implementing a freemium model for SlideShare by charging for premium services while keeping core functions free. It notes that users should pay for things that cost money to provide, and pay-per-use can increase stress for users. Freemium customers are often small businesses, and bundling services can increase perceived value. Conversion rates alone don't matter as much as conversion volume, and free users help with marketing and drive revenue if they don't churn.
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From Free to Freemium
- 1. Adding Freemium to SlideShare @jboutelle slideshare.net/jboutelle www.jonathanboutelle.com
- 2. What our premium services look like
- 3. “ Charge for things that cost you money“
- 4. “ Don’t charge for things that bring you more users”
- 5. Paying by the drink is stressful
- 7. Pre-pay makes price experiments difficult
- 8. Freemium Customers = small business
- 14. Bundles increase perceived value
- 15. Test subscription plans the easy way
- 18. Give them a “trigger”
- 24. First Impressions matter First Impressions Matter
- 25. “ Free users keep you honest”
- 26. PAID users keep you honest
- 28. “ You need to have a conversion rate of 1% - 4%”
- 29. Conversion volume matters, not conversion rate
- 30. “Free users are our marketing cost / distribution strategy”
- 31. Free users generate revenue
- 32. Churn kills
- 33. Use Cohort Analysis to understand Churn Caution: generating this data harder than it looks
- 34. Flattery will get you places
- 35. Customers will tell you what to build and how much to charge
- 36. Blended Revenue
- 38. slides are at slideshare.net/jboutelle
Editor's Notes
- Intro (me and slideshare) Journey to freemium Different for media businesses than it is for productivity businesses
- 1) Accounting 2) Fair
- Positive network externalities Skype: Computer-to-Computer DropBox: Sharing with other people SlideShare: Public Sharing User adoption + Money
- Leadshare story APPEAL TO SUPER-CHEAP
- Leadshare informed too much by what b2b marketers do, and how they think. For freemium to really perform it has to be addressing VSBs CHANNELS
- ANALYTICS Paying customers have credibility … they’ve proven they will buy. TALK ABOUT ANALYTICS HERE!!!
- buffet
- So we came up with a pricing plan, and sort of soft-launched our premium offering. We didn't make it easy to find out that we had a subscription offering, but we had a the offering live on the site and we started sending links to the page to people who were already buying leadshare or who were interested in channels. Unbounce Change the PAGE, not the PLAN Make the pricing page in unbounce or performable, so that you can rapidly test different versions without impacting engineering Implement subscription billing using a subscription service, so you don’t have to deal with the headache of that Build the ability for different types of accounts, but start out with every type of account having every feature (on the back end). That way you can make any change to the plan descriptions you want, and not be lying
- BJ Fogg
- FUNNELS
- FRAMING FIRST IMPRESSIONS MATTER (picture of a dork)
- Need video snapshot of this guy
- Track churn with cohort analysis. TRACK BY WEEK Interview customers for why they cancelled Aggressively add new features to paid plans DESIGN FROM BEGINNING for cohort analysis
- SOCIAL PROOF Business class (IMAGE?)
- Simplifies product planning