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Freemium
Overview
It works even better with web native services.
To start with, A VC view on what was not yet called "freemium" by Apr 24
The revenue side
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This pearl is my general point of view on freemium from a revenue side perspective. by Apr 22
This map includes 2 main branches. 1) posts on freemium, 2) data points on like convertion rates, price points. A small branch on recent social networks going for freemium by Apr 22
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The cost side
... but marginal cost needs to be taken into account by Mar 1
Diversity of freemium models
A good roundup of revenue models from Mashable, with examples and interviews with entrepreneurs in each. The five are: Freemium, Affiliate, Subscription, Advertising and Virtual Goods. Mon, 13 Jul 2009 00:57:00
The various freemium models. We often refer to number 2 (featured limited) in the web but there are actually others. Though I question thatsome of them are more a pure marketing technique rather than a endogenous sustainable business model (cf. marginal cost issue discussed earlier). by Mar 1
Academic papers for motivated people
Which service could do it?
I bring them up because they recently decided to move forward with a freemium model in a serious way for the first time last week. As a large service with a rabid fan-base, this seems like a brilliant move.
KSF of freemium
A good roundup of revenue models from Mashable, with examples and interviews with entrepreneurs in each. The five are: Freemium, Affiliate, Subscription, Advertising and Virtual Goods.
A deep dive on the necessity of scale for freemium to work by Mar 1
Those predictions are interesting in light of a September 2008 study by Rubicon Consulting .
Which price point ?
What is the right price point? Very difficult to know. Here are some interesting stats. by Mar 1
Click to download Freemium spreadsheet
How to create a profitable Freemium startup (spreadsheet model i
5 key lessons to make it work
Today we have a fantastic guest blog from Ranjith Kumaran, on his adventure going from an ad-supported free service to a subscription-based freemium model. Ranjith is the Co-Founder & CTO of YouSendIt.com , a Silicon Valley company that allows businesses and individuals send, receive and track digital content securely and easily. Enjoy!
1. Blog content and tags for a vertical – in this case social media. Its an exhaustive list of about 25 to tags ranging from facebook to personal branding and from social news to blogging & blogs.
Metrics to track with freemium
Case Studies in Freemium: Pandora, Dropbox, Evernote, Automattic
That’s what some startups say is the key to success in the freemium business. But the biggest reason the five presenters this morning at the Freemium Summit in San Francisco — Pandora, Dropbox, Evernote, Automattic (see disclosure at the bottom) and MailChimp — are doing well is because they have great products that people want.
A good roundup of revenue models from Mashable, with examples and interviews with entrepreneurs in each. The five are: Freemium, Affiliate, Subscription, Advertising and Virtual Goods.
Real life benchmarking on pricing and conversion rates
A deep dive on the conversation rate by Mar 1
Sources of convertion rates
Spotify 5% conversion
A: It was a key decision, and one reason we’re a native app. Helps offload bandwidth. P2P actually helps Spotify and users, it will take tracks on your friends and coworkers on same local network and stream to them so it’s faster.
Towards end of the interview, Spotify CEO says they have a 5% conversion rate to premium by Mar 17
Funding: $183M
10 million users have tuned in to Spotify so far, but only 1 out of 20 pays for it
Evernote case
UPDATE: Someone who wants to remain anonymous suggests that the $100 million “Proposed Maximum Aggregate Offering Price” that Skype’s owners have filed with the SEC is merely a placeholder. Which means the company may ultimately seek to raise much more.
Skype: 6.5% conversion at $96/year
A spat among professional networks: Class war | The Economist
Freemium conversion rates 1% for LinkedIn, 10% Viadeo, 18% Xing by Sep 28
One of the best source of social web revenue and cost benchmarking: Xing - a european competitor of LinkedIn - is a public company so all reports are public... by Apr 24
An interesting case study with real numbers by Futuristic Play by Mar 1
though the site itself is not mainstream for most web entrepreneurs by Mar 1
SEC documents from Adult Friend Finder
The SEC document source of all hte numbers for those who want to make alternative analysis by Mar 1
Price points: Ning (at bottom)
The NY Times' Freemium Strategy
There's Money to be Made in "Premium Privacy" Says VC Fred Wilson
Yep. Though it's a change of paradigm and it requires that the service started 100% public. It's interesting to see that while before "private" was sort of a requirement, now "public" is the norm and hence "private" could be monetized. by Jul 28
Monetize privacy... Sounds interesting... by Jul 23
Freemium + Emergence Capital Partners



