Freemium Summit Toni Schneider
-
date post
14-Sep-2014 -
Category
Business
-
view
2.805 -
download
1
description
Transcript of Freemium Summit Toni Schneider
Toni Schneider, CEOFreemium Summit
March 26, 2010
2006
5 Things We’ve Learned Building Our Freemium Business
YMMV
1. Find the Freemium Fit
Go Into Freemium with Your Eyes Open
•Freemium is *not* for everyone
•Can be great (Zynga) or not so great (Yahoo! Mail)
•Marginal benefit has to be high and defensible
•Free tier must be self-sustaining
•Paid tier has to be focus, not afterthought
2. Charge for the Hard Stuff
Who is Your Ideal Customer?•Many options for running WordPress
•Standalone software is free to everyone
•Free hosted tier
•Paid hosted tier
•Focus revenue model on customers who have budgets to run their sites but not the IT staff
Deciding What to Charge For•We charge for things that have a well understood cost and
are hard to do
•What do you do when your main competitor gives everything away for free?
•Compete by delivering unique features, constant upgrades and superior user experience
3. The Life of a Paid Feature
Domain Mapping•Complementary to blog hosting
•Requested consistently by early WordPress.com users
•Priced above upstream provider’s charge to us
•Initial rollout: payments through PayPal only, limited promotion
•Improvements over time: Dashboard alerts, support docs, store payment options, more to come
Domain Mapping Adoption
Unit sales per week
2006 2007 2008 2009 2010
3,000
2,400
1,800
1,200
600
4. Manage What You Measure
The Dashboard is Your Friend
WordPress.com Blogs
0
2,750,000
5,500,000
8,250,000
11,000,000
Jan-06 May-06 Sep-06 Jan-07 May-07 Sep-07 Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10
Source: Internal Logs
WordPress.com Monthly Uniques
0
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
1-Apr-07 17-Jul-07 1-Nov-07 16-Feb-08 2-Jun-08 17-Sep-08 2-Jan-09 19-Apr-09 4-Aug-09 19-Nov-09 6-Mar-10
Source: Quantcast
Which Metrics Actually Matter?•Find your core metric
• 10M blogs sounds great, but it’s the 400k unique new posts a day that matter
•Optimize for the revenue related metrics
• 250M unique visitors sounds great, but (for our Freemium business) it’s the 200k paying customers that matter
5. You Can Always Make it Better
Best Practices•24/7 customer support from the beginning
•Listen to user feedback: Sad Xmas, blog comments, Net Promoter Surveys, survey.io, WordCamps
•Continuous deployment model for development
•No user lock-in
•20% contributions to open source projects
•Multi-language from day one
Things We’re Working On•Pricing and segmentation analysis
•Payments/subscriptions
•AB and multivariate testing
•Premium feature discovery
•A la carte vs. tiered features
2010