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If you think I disagree with that, you misunderstood what I wrote.
by pg 15y ago
If you think I disagree with that, you misunderstood what I wrote.
- blantonl 15y agoIt is probably a case of us arriving to the same result by taking a different path. As I go back and reread your post with a broader viewpoint thats what I'm thinking?
- jayliew 15y agoIt's possible that you could have a company that has 1% paying users that's MORE profitable than a company with 50% paying users. The size of the profit is more important than ratio of paying to non-paying, generally speaking. (And of course, in either case you pay real close attention to the conversion rate and try to get it up higher.)
- setzer 15y agoThe total number of paying customers is what determines your revenue. But even then, it's important to track free->paid conversion percentages, e.g. sudden drop offs.
- sraut 15y agoSo what you are saying is having free users is better than no users (even though it is an expense) because a greater proportion will convert (hopefully) eventually? Write it off as a marketing expense and hope it attracts more paid users?