FreshBooks co-founder and CEO Mike McDerment explains to Nathan Latka the strategic trade-offs between free trial and freemium SaaS pricing models.
0:00 / 0:17exact quote · 17.4s
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“A freemium model, maybe get more people using, but fewer people paying with a free trial model, you have a decision point, so you can actually learn with more confidence, because there's consistent periods in that, so if you're thinking about business model, there's various trade-offs in you know, one versus the other”
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More from Mike McDerment
Insight
McDerment: Institutional investors provide executive hiring data operators cannot
“One of them runs an 80,000 person company, but couldn't tell me market data, like how much should we pay, you know, executive who does this or like those kinds of things with professional investors. Like, you know, they just give you those answers tickety boo …”
Mike McDermentDec 20, 2018▶ 10:571244 Why Freshbooks CEO was Anti-VC, then Raised $75m
AssertionSupported
FreshBooks avoids phone trees and provides live human phone support
“Like, we don't have a phone tree. You get a live person when you phone us.”
Mike McDermentDec 20, 2018▶ 13:561244 Why Freshbooks CEO was Anti-VC, then Raised $75m
AssertionPartly supported
FreshBooks has raised over $75M USD in capital
“So I guess at this point we've sort of secured over seventy five million dollars in capital the U S dollars.”
Mike McDermentDec 20, 2018▶ 9:291244 Why Freshbooks CEO was Anti-VC, then Raised $75m
Disclosure
McDerment: FreshBooks excludes retail, restaurants, and manufacturing to stay simple
“We're focused on folks who you know, get paid for their time and expertise when serving other people. So we don't serve restaurants. We don't serve retail. We don't serve manufacturing. Really, really around client service based businesses, people who serve ot…”
Mike McDermentDec 20, 2018▶ 3:011244 Why Freshbooks CEO was Anti-VC, then Raised $75m
Disclosure
FreshBooks employs slightly under 300 people
“We're a little shy of 300 people is kind of the, you know, one benchmark that, but you know, I yeah, we basically don't disclose, but that's one thing we do.”
Mike McDermentDec 20, 2018▶ 15:541244 Why Freshbooks CEO was Anti-VC, then Raised $75m
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