![]() Related: Subscription-based sales - A primer for small businesses What is a freemium business model? Whether it’s a software service, trunk club or jelly-of-the-month club, your subscription service or product offering could always use more premium subscribers. In this article, I want to help you find a free-to-paid conversion strategy that can help you make the most out of your freemium offering. If your 1% conversions are netting you $10,000 per month, imagine what an additional 1% could mean for you. But how do you increase your freemium conversion rate and convince more customers to upgrade and pay for the full premium version of your offering?Ī typical freemium conversion rate usually clocks in around 1%, although a few years ago, Dropbox was getting a 4% conversion rate.Ĭompare that to Spotify’s nearly 26.6% conversion rate, and you can see that 1% may be respectable, but it’s not 20-million-users-out-of-75-million respectable.Įven if you have just a 1% conversion rate, an additional 1% bump could mean some serious money. ![]() So the freemium business model is always a big, big hit with consumers because it lets them try out your product or service for a time to decide if they like it. And even the Chinese restaurant near my coworking space gives out free orange chicken samples to anyone walking past. Magazines and TV streaming services give you a free month to check it out. Grocery stores give out free samples of food they want you to try.
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