case studies for freemium

Posted on April 2, 2010


would have loved to see 36 signals take on teh freemium market as they really have done well out of it.

summary of points on making freemium a success:

1. freemium is your advertising budget – dont spend money on SEM and other advertising because it just increases your cost of acquisition unless you have carefully figured out your cost per new user and the maths shows that advertising costs is less than your effective  income per user

2. what are the features that cost you a lot, but nobody uses ? eradicate them

3. freemium is a volume game – so make sure that there is profitability with volume and not greater losses

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