> only ~1% of users are paying, it seems like very small changes in conversion rate could make or break the business. Agreed. 4% to 5% seems to be the minimum

> only ~1% of users are paying, it seems like very small changes in conversion rate could make or break the business. Agreed. 4% to 5% seems to be the minimum for this sort of model to sustain and not die. > Chris Anderson in his book “Free” explains that Freemium works on the 5 Percent Rule - where 5% of premium customers support the remaining 95% of free users and also the cost of servicing the 95% is close to zero. Source: https://www.chargebee.com/blog/freemium-business-model/ https://www.chargebee.com/blog/freemium-business-model/ When Dropbox launched they were surviving on their 4% of users who had converted from free subscription. Now their conversion rate is around 25% which is very impressive for a fremium product / service.