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3 Things That Freemium Companies Do Right

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Have you ever used Dropbox?

What about MailChimp?


If so, there’s a good chance it didn’t cost you anything to use them.

Want to know why?

Well, those companies operate an extremely effective Freemium business model.

They allow anyone to Try before they Buy knowing that a large percentage of those will upgrade to a paid version eventually.

They’re playing the long game.

Something you can ONLY do (and survive with) if you have the right systems to close the sale later.

And that’s why in today’s video, I’m going to teach you:

The 3 things that all freemium companies MUST do right to succeed.

In a nutshell, it comes down to these key strategies:

1. They use free as a way to market themselves, educate & win mindshare. A great example of this would be Slack.com

2. They use data to improve their product using advanced techniques like cohort segments, A/B testing, etc. Companies like Evernote do this extremely well.

3. They use your data to prioritize their sales efforts by qualifying your account, and ranking the probability that you’ll buy, sending only those leads to their sales people. Yammer.com did this perfectly, hence their sale to Microsoft for $1.2B.

If you’re running a Freemium SaaS product, be sure to incorporate these strategies to grow your user base WITHOUT sacrificing your survivability.

Have an incredible day!

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