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Satyam Kumar
"Turning visions int...Ā ā¢Ā 22h
Freemium Model for Startups: Smart or Trap? What is it? Freemium = Free + Premium. You offer a basic product for free, and charge users for advanced features, limits, or perks. Who should consider it? ā Startups in SaaS, Edtech, Productivity, Developer Tools ā Products with low marginal cost per user ā If your product has a strong network effect or virality ā When upsell potential is clear (free users eventually convert) Where it flops ā High cost per user (think: customer service, bandwidth-heavy apps) ā If free users never feel the need to upgrade ā If your premium isnāt 10x better than free ā Youāre not funded and need revenue yesterday Real Examples: šŖ Worked: Zoom, Canva, Notion š¬ Flopped: Evernote (too many free users, not enough upgrades) Freemium is NOT free marketing. Itās a bet: "Our free users will eventually pay." That bet only works if you're: Tracking usage data š Offering clear value jumps š„ Ready to support 90% non-paying users š
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