Making Freemium Work - Panel at Google I/O
For those entrepreneurs exploring SaaS applications and freemium models, this panel from Google I/O covers a lot of good territory. Here are a few of the highlights:
- People often choose the plan that optimizes for least surprise rather lowest price
- Understanding value of product comes before understanding pricing
- Based on the panel's experience conversion rates typically fall in the 2-5% range
- Most people won't pay you for features in the paid version, but they will pay for more usage of that same feature set
