4 ms·
any companies have tried the freemium model and then realize that it can't scale (IE: the costs to support this free user base out weighs the benefits). It has
by miles 16y ago
any companies have tried the freemium model and then realize that it can't scale (IE: the costs to support this free user base out weighs the benefits).
It has scaled wonderfully for Evernote:
"From the start, Libin modeled Evernote to be profitable at a 1% conversion rate ... Right now, roughly 2% of all Evernoters are premium customers ... Libin wants to maintain that rate at 5% or less. If people start converting en masse, 'that means our free product isn't good enough,' he says."
http://www.fastcompany.com/magazine/147/next-tech-remember-the-money.html http://www.fastcompany.com/magazine/147/next-tech-remember-t...
- rick888 16y ago"It has scaled wonderfully for Evernote:" This is the exception rather than the rule.