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Github just did the same thing! It’s because the math works like this: They’d need 1,000 people to pay them $4 to match a single enterprise company paying them
by gkoberger 6y ago
Github just did the same thing! It’s because the math works like this: They’d need 1,000 people to pay them $4 to match a single enterprise company paying them $4k/mo. So they just need one of those 1,000 people to bring Notion into their company, and they’re ahead. If they get 10, they’re way ahead. (This is slightly simplified, of course)
- jilles 6y agoI never thought about it in this way, very interesting and super logical actually.
- tnolet 6y agoThis is exactly how freemium in b2b SaaS works. The free plan is a marketing tool to drive awareness and adoption.
- bachmeier 6y agoDon't overlook the importance of the economy. It's tough to get individual customers to pay $4/month for a service like this in a good economy. (They were already giving it away to academics, which will never be a lucrative market.) I wouldn't want to be selling Notion to individuals in an economy like this.
- noam_compsci 6y agoThis is exactly what I did. Free student user. When I started working at a new company, and they wanted to modernise internal knowledge tools, I recommended Notion. Fingers crossed it gets traction.
- Lightbody 6y agoThe impressive thing here is that it's (sadly) pretty rare for a company to actively cease a revenue stream and think of the longer term benefits. GitHub and Notion are two recently examples, but for every one I see in the market, I can point to at least 10 that failed to take the obvious action.
- MivLives 6y agoIn Github's case I feel like it helps that they have Microsoft backing them up. MS is much more used to this model, I imagine they make a ton more off enterprise licensing then they do off individually sold ones.
- hinkley 6y agoMore than that, because account management and dealing with billing problems is not free.
- xd_dino 6y agoExactly. After reading this Notion going free news.. My initial reaction is "the Github way". In any case, thank you for explaining math behind.