2 ms·
For a long time I went back and forth on whether I should do a freemium plan for my SaaS startup[1]. It was a difficult decision considering many of my competit
by fookyong 12y ago
For a long time I went back and forth on whether I should do a freemium plan for my SaaS startup[1]. It was a difficult decision considering many of my competitors are freemium and I see they enjoy certain benefits from that e.g. a large userbase of fans that help them to market the product indirectly.
I finally decided against it based on:
1) Free users would increase support costs / required resources, possibly to the detriment of support quality for paying customers.
2) My SaaS startup is a "lifestyle" business and I'm fine with a slow, steady growth of exclusively paid customers. I don't have an investor breathing down my neck looking for "explosive" growth.
3) It complicates the product roadmap. It's much more focused to have a paid product that gets incremental upgrades, than to have to manage between free and paid feature-sets and continually evaluate whether a new feature is something that everyone gets or just the paid folks. Makes my head spin just thinking about that.
4) Revenue is a pretty nice thing to have.
[1] http://www.beatrixapp.com http://www.beatrixapp.com
- rokhayakebe 12y agore:2 I think this is extremely difficult decision to make if you have moderate success. If you can turn turn $0.30 in profit of out of every $1 invested, and it scales, how do you make the decision to remain boostrap and earning $2M over 7 years vs. raising money and making $100M by year 5.