If you decide to go for the freemium model there are several things you should check before taking the plunge:
- are other companies offering what you intend to offer behind the pay-wall for free or not ?
- are you going to be able to monetize your free users in some other way ?
- what is your expected conversion rate from free users to paying users and can your business survive on that rate (+ a healthy margin for safety) ?
- what is the cost of supporting a free user in case the monetization of a free user is less than the income on that user ?
A fairly simple spreadsheet will give you the answers, if you can't determine the conversion rate then do a survey with a pledge. That way you get a ballpark figure, reality should be within 50% of that figure, so to be on the safe side discount it by a factor of 2.
Last but definitely not least, if your 'premium' package offers nothing of value to your user (because for instance multiple free accounts give the equivalent of a paid account) then don't bother trying.
If you decide to go for the freemium model there are several things you should check before taking the plunge:
- are other companies offering what you intend to offer behind the pay-wall for free or not ? - are you going to be able to monetize your free users in some other way ? - what is your expected conversion rate from free users to paying users and can your business survive on that rate (+ a healthy margin for safety) ? - what is the cost of supporting a free user in case the monetization of a free user is less than the income on that user ?
A fairly simple spreadsheet will give you the answers, if you can't determine the conversion rate then do a survey with a pledge. That way you get a ballpark figure, reality should be within 50% of that figure, so to be on the safe side discount it by a factor of 2.
Last but definitely not least, if your 'premium' package offers nothing of value to your user (because for instance multiple free accounts give the equivalent of a paid account) then don't bother trying.