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6 reasons why you’d be crazy not to go freemium. who’s ready to talk about freemium?

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Presentation on theme: "6 reasons why you’d be crazy not to go freemium. who’s ready to talk about freemium?"— Presentation transcript:

1 6 reasons why you’d be crazy not to go freemium

2 who’s ready to talk about freemium?

3 what does box.net do?

4 4,000,000+ users 60,000+ businesses 500,000,000 files served/year

5 we weren’t always ‘freemium’

6 those were the two most profitable months we’ve ever had

7 “you’re crazy to give this away for free” in 2005, an early investor said: …and then he referenced pets.com

8 “think about the cost of storage, bandwidth, support, operations, and blah and blah and blah…”

9 he was right and wrong he was already a billionaire, so it didn’t really matter

10 the times have changed amazon s3, google, outsourcing, Ycombinator, and so on

11 a free trial is not enough (unless you’re selling to the CIA)

12 fundamentally, happy customers will pay you* *if you have a good product

13 make the “average” free, and charge for the fringe security, more space, no ads, etc

14 technology decisions are now being made by users, not management don’t put up a wall in front of them

15 here’s why you’d be crazy not to give out your software for free

16 lower friction = faster traction hook them early and get their data

17 high marketing leverage your users are your marketers

18 it forces you to make a much, much better product you can’t just be larry ellison

19 sales will love you only talk to people that want your product

20 reach traditionally impenetrable markets your product will seep into new ecosystems

21 if they don’t want to pay, they don’t have to leave only lose customers to yourself

22 just to be fair, a few reasons why freemium sucks 

23 sales will hate you  for the same reason they love you

24 delayed gratification  some users take years to pay, most never at all

25 lower commitment  smaller barrier to entry means smaller barrier to exit

26 free = cheap & insecure  no one ever got fired for buying IBM

27 in conclusion google wants to destroy you

28 Build. Get traction. Monetize.


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