business plan
Marketing

Freemium

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Three days ago, I attended a company’s meeting about our company’s new revolutionary SaaS. It’s a service that helps WordPress product sellers increase sales by allowing their potential customers try their WordPress themes or plugins for real before buying.

it’s a freemium service. Which means it has both free and a premium plan for our desired customers. I got an interesting takeaway from the meeting.

Originally, it’s a question from my CEO regarding the beta release of this service:

“Should we let users know it’s a freemium right from this beta release or just make it a free service at first? So if we’re going to present it a freemium from the start we have to include our Pricing page now. If not, we’ll leave it until official version.”

Note that the service is going to run beta version, not the official release. So, our goal is to attract as many beta users as possible to test and improve the beta version. We’ll collect feedbacks and from those, we can polish the official final product.

There are two schools of thought.

One thinks that to attract people and to remove the barrier of pricing from user’s mind, we should make it look like a totally free service. People will feel more eager to try it out because it’s free.

The others think we should present ourselves as freemium right from the beta version. Why? The reasons are:

  • It’s honest: we tell it is what it is, no half truth.
  • It looks more serious. A free stuff may sound interesting but at the same time, it sounds cheap. You want that? Letting users know we’re providing premium plans will add more to our prestige.
  • Plus, a pricing table from the start will help WordPress providers (who have the cash to spend, yeah) easily compare the price with other competitors to choose their desired solution.
  • We still can attract beta users since we still have a Free plan for them to choose. Also, an early pricing table will help educate them about our price and service too.

Regarding the benefits, applying Freemium with a Pricing page from beta version is the best solution. The second thought won!

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A digital marketer, blogger, freelancer, astrology fan, mommy of a lovely elephant and helpless Japan-lover. Or just call me Vivian. Hope you have a good time up above the cloud with me.

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