What do start-ups need to think about when rolling out a freemium model?
Freemium still seems like a tough model. What do start-ups need to think about when rolling out a freemium model?
Here are three things the CEO of Evernote thinks about:
- Make a product that a billion people will fall in love with and use for the rest of their lives.
- Make it easy for a single-digit percentage of them to pay you a few bucks a month once in a while.
- Make sure your variable costs are low enough that you can make a mountain of profit if you get #1 and #2 right.
If you can't see how you'll do all three things, go with another business model.
