Levine: Bottom-up virality is a head fake without direct enterprise sales
Peter Levine · a16z Podcast | Pricing Free · Jan 2, 2019 · at 3:19
Peter Levine, General Partner at Andreessen Horowitz, discusses monetization strategies for freemium software startups.
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“It's sort of a head fake when, you know, the best products, the products with this unbelievably great product market fit from day zero with freemium start to take off. And the assumption is like, oh, well, look at here. We don't need a sales organization. Let's just go hire more engineers and the market will just continue to uptake. But what we see is over time, that curve starts to flatten out because the number of users and kind of the virality starts to slow up and the value that one can get out of the revenue value that one gets out of that from an organizational standpoint can never be realized in the same way as when you have a sales organization actually selling and educating the organization on the benefits of this.”
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