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Satyam Kumar
"Turning visions int... • 21d
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? ✅ Startups in SaaS, Edtech, Productivity, Developer Tools ✅ Products with low marginal cost per user ✅ If your product has a strong network effect or virality ✅ When upsell potential is clear (free users eventually convert) Where it flops ❌ High cost per user (think: customer service, bandwidth-heavy apps) ❌ If free users never feel the need to upgrade ❌ If your premium isn’t 10x better than free ❌ You’re not funded and need revenue yesterday Real Examples: 💪 Worked: Zoom, Canva, Notion 😬 Flopped: Evernote (too many free users, not enough upgrades) Freemium is NOT free marketing. It’s a bet: "Our free users will eventually pay." That bet only works if you're: Tracking usage data 🔍 Offering clear value jumps 💥 Ready to support 90% non-paying users 😅
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