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3 responses to “Freemiums for SaaS”

  1. Oscar A Jofre

    Bob, this article is great. I believe you have summarize it perfectly. We use the Freemium business model, and I firmly believe you need to give it all, and really know your customers/users to get the premium ( revenues) coming to your business to become sustainable.

    We have found a way to keep building the product, giving the user everything they need in a simple one single point of entry. Thus allowing them to then use our premium services.

    Oscar A Jofre
    Founder, President/CEO
    BoardSuite Corp.

  2. Jack Hansen

    The *real* story of helpstream/pathworks/ambient wasn’t because the salespeople resisted Freemium because of lack of commission. The early salespeople, as in most customer development situations, were in it for the equity play at the back-end. The CEO was given a reasonably useful solution and handed the keys by the board. The board would have been happy with a double, or even a single. The CEO however, was hell bent on hitting a game-winning grand slam on his first at bat.

    It was very obvious that business customers would not expose sensitive data in an ad-supported model. It was also obvious that there would not be enough eyeballs to support it regardless the sensitive nature of the data.

    The real problem was that it was a first-time CEO in his first start-up. There was a complete failure to recognize that the principals that look great in a controlled laboratory experiment don’t necessarily work in the real world. If you don’t bring in revenue, if you change your strategy every three months, if you treat your employees like mindless drones, and then top it off by lying to your board: you’re toast.

    Kudos to him for lasting as long as he did.

  3. Freemium, a Blogosphere’s Growing Trend

    [...] Monetizing your blog with advertising was the it thing to do. It still is and now we are adding a new trend on the list, freemium. [...]

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