Freemium Model
topic on 4 shows · 6 statements across 5 episodes
Startups For the Rest of Us
Masters of Scale
the Official SaaStr Podcast
Top Founders
6 statements about Freemium Model, every show
Walling: Low-priced freemium SaaS models require millions of monthly unique visitors
“The only companies that I know who have made this type of low price point freemium model work get hundreds of thousands, if not millions of uniques per month.”
Walling: A $20/month freemium Chrome extension is unviable to bootstrap
“95% sure this is an inviolable business without quite a bit of funding.”
Tobaccowala: SurveyMonkey founder was among the first to use freemium
“He, I think, invented the freemium model, or at least was one of the first people in the world to use the freemium model.”
Mickos: Freemium models require maximizing adoption rather than limiting free users
“But if you go for a freemium, you must go all in. You can't sit there thinking, okay, we'll give away this for free, but let's hope not many will take it. No. You need to hope that everybody will take it. Like, if you do a freemium, you have to go all in, and …”
Freemium Models Dangerously Delay Validating if Customers Will Actually Pay
“Freemium model is amazing to get to spread the word out, but it also delays the time when you truly test whether or not your product delivers the value to your customers.”
Rusenko: Freemium models require word-of-mouth growth and low marginal costs
“If there's a couple of things that has to work, it only works. Number one, if it is driving word of mouth for you, it only works. Number two if your marginal cost per additional user is low enough to sort of support the freemium model.”