lincoln murphy sixteen ventures

Freemium & The Enterprise -Proceed with Caution

We help web companies make print money

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Freemium is a Marketing Tacticnot a Business Model

Marketing should align with your market, right?

How does your market feel about free?

Consumer-oriented Customer Acquisition Techniques

Businesses are DIFFERENT than consumers...

...and that is a good thing!

Businesses have more MONEY than TIME

Mo’ Money, Mo’ Problems

Problems

Money

The best idea:Solve a real business problem & charge money for it

3%

Back of the Napkin Math -Is Freemium even possible in our market?

Addressable Market x Reach % x Sign-up % x 3% = Potential Paying Customers from Freemium

Back of the Napkin Math -Is Freemium even possible in our market?

Addressable Market x Reach % x Sign-up % x 3% = Potential Paying Customers from Freemium

Health Clubs in the US x30% (reach) x

50% (sign-up) x3% (conversion to paid)

30,000 9,0004,500

30,000 9,0004,500135

Health Clubs in the US x30% (reach) x

50% (sign-up) x3% (conversion to paid)

Addressable Market x Reach % x Sign-up % x 3% = Potential Paying Customers from Freemium

Back of the Napkin Math -Is Freemium even possible in our market?

30,000 9,0004,500

Marketing

Stops!

Health Clubs in the US x30% (reach) x

50% (sign-up) x3% (conversion to paid)

Most companies just Lay & Pray

135

Addressable Market x Reach % x Sign-up % x 3% = Potential Paying Customers from Freemium

Back of the Napkin Math -Is Freemium even possible in our market?

30,000 9,0004,500

Health Clubs in the US x30% (reach) x

50% (sign-up) x3% (conversion to paid)

Wrong

Users

Beware False Traction!

135

Addressable Market x Reach % x Sign-up % x 3% = Potential Paying Customers from Freemium

Back of the Napkin Math -Is Freemium even possible in our market?

The Wrong Kind of Traction

http://www.accesshealth.com.au

Attract the RIGHT KIND of users

http://smoothspan.wordpress.com/2010/03/25/freemiums-for-saas/

“The long and the short of it is that we got a ton of Freemium users, but they were mostly not customer prospects.”

- Bob Warfield

Wide-Band Horizontal (HCM, ERP)Narrow-Band Horizontal (Box.net, Yammer, Xobni)

Vertical Specific - Wide or Narrow

Where does Freemium work?

Wide-Band Horizontal (HCM, ERP)Narrow-Band Horizontal (Box.net, Yammer, Xobni)

Vertical Specific - Wide or Narrow

Where does Freemium work?

That’s why they’re here & not the other types

Freemium Methods that Work?

Alternative Product Strategy

Land & Expand

The best idea:Solve a real business problem & charge money for it

New Pricing & Revenue Modeling Programs coming

in April

Contact Info

http://sixteenventures.comlincoln@sixteenventures.com

@lincolnmurphy

(972) 200-9317

Lincoln Murphy