OnDemand WTP Pricing Research

SaaS Freemium: How to succeed and how to fail | Chargify

“Should we go freemium?”

While freemium can propel a company to success, it can also suffocate a company’s financial and labor resources.

In Chargify’s early days, we got bit by the freemium dragon and learned from our mistakes – more about that in a bit.

In addition to reviewing the top pros and cons, we’ll share the keys that make the freemium model work well in the SaaS world. So how do you know if freemium is right for your specific SaaS business? Read on!

First, let’s agree on the basics:

Freemium is a pricing strategy in which you give away a part of your product (with restrictions) for free while offering your premium product (or service) for a cost. While the free product or service is usually limited in scope (i.e. you are restricted by the number of features or users), the time duration the user can utilize it is unlimited.

This in contrast to the free trial, in which the user is able to trial the full product or service at no cost for a limited time. In the SaaS world, free trials are typically 14 or 30 days, but can last as long as 60 days. At the end of the trial, the user is faced with a purchase decision – buy or move on.

While the free trial has become the de facto standard in the SaaS world, many companies use a freemium offering to lure in users and funnel them into a premium, paid product. But it doesn’t always work out.

Read complete article here:

SaaS Freemium: How to succeed and how to fail.

Post a Comment

WP-SpamFree by Pole Position Marketing