What did you do to make your business succeed?

How does a web startup make its freemium business succeed?

• The freemium model requires a company to put in huge investment upfront and try to leverage the life time value of the users to make money over time. So what are some of the potential drawbacks of following this route?

• Answer:

  Just because a user doesn't directly pay doesn't mean they aren't helpful. You can monetize free users (e.g with ads) and they can also serve as a marketing channel for your company's products and services. The way you make the model succeed is by being mindful of conversion rates, determining the right pricing strategies, putting smart conversion triggers in place and making sure that your free users aren't ultimately that expensive e.g. require a lot of support In terms if drawbacks, it's possible you destroy the value of your offering by having a free version of your product. That's why it's important for you as an organization to understand what your customers truly value, the value they place on it, and what they are willing to pay for it. Conversion triggers help out a lot with this.