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Is there anything in this experience that's actually a result of a Freemium model? It sounds like any usage spike would have resulted in the same outcome. If y
by brwnll 11y ago
Is there anything in this experience that's actually a result of a Freemium model?
It sounds like any usage spike would have resulted in the same outcome. If you had been featured in Oprah's "Favorite Things", and ended up attracting the same number of users to a paid plan, which of the events would not have occurred?
1. Server resources would have been strained.
2. Engineers would have been reassigned to scale instead of features.
3. Existing customers would have churned as a result of inability to scale.
The only notable difference is that you did it to yourself. On the flip side, it also enabled you to turn it "off" by limiting the free account, which you would not have been able to do if the users were from a referral source expecting to pay for account anyway.
- sanderjd 11y agoIf they had a massive influx of paid users, they would have been able to spend their way out of their scaling problems by first buying server resources and then hiring.
- nartz 11y agoAgree with this. 1. Have you determined the capacity, and cost of freemium vs paid users? 2. Your pricing should, at the least, cover your costs. 3. Before any large marketing push, make sure you can handle the estimated load, and have a plan to 'scale out' (add application servers, defer or async possible DB calls, etc)....