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The post is solid, but one of the things I like most in here are the signs of looking at where revenue came from (the comment about only 1% of revenue coming fr
by timrosenblatt 14y ago
The post is solid, but one of the things I like most in here are the signs of looking at where revenue came from (the comment about only 1% of revenue coming from the entry-level plan).
I'd love to hear more from Richard about how they tested the impacts of moving from the $5 to the free plan.
And yes, it's definitely a solid strategy to delay revenue for users. I'm sure someone will argue this is Web 1.0-bubbly thinking. But, provided you're doing it in the way that Richard suggests, it's not totally insane. Twitter might not have found a great business yet, but at least they've gotten past one of the big hurdles -- getting people to come to the party.
- rrwhite 14y agoWe tested it using Optimizely, what we use for A/B tests, but rather doing a true A/B test we made into a sequential test (by manually setting all traffic to go to one variation versus another). It took a couple days to test and it's tough because since it's sequential traffic spikes will screw everything up and you'll have to start all over. So basically we compared two weeks with "average" traffic: running $5 plans one week and free plans the next week. Obviously if anyone noticed we allowed them to switch their plan to free.