Should you introduce Freemium in a B2B SaaS startup to boost growth?

Probably not — because it’s too late.

If you don’t start Freemium, it’s very very hard to add that DNA later, once you have real revenues, processes and software optimized around larger customers and deal sizes

Freemium:

  • Requires a much more elegant onboarding (no human assist) that most enterprise software
  • Requires millions of users to make the conversion funnel work. More on why here: Why You Need 50 Million Active Users for Freemium to Actually Work | SaaStr
  • Requires that the users get huge value out of the product in minutes, without human interaction to explain that value
  • Distracts the sales team
  • Distracts the marketing team
  • Etc.

If you start there, and do OK there, you can then go upmarket. Your product and your team will have the DNA.

But if you have a product today that has thousands of users (not millions) and requires onboarding, selling, training … the odds you can build a freemium product that will make any money is close to nil.

Lucid Software: How 10 Million Freemium Users Built Our Enterprise Sales (Video + Transcript) | SaaStr

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Published on July 13, 2018

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