Joe Kraus (founder of Excite and later Jotspot) and the fellas from Wufoo. Both had horrifying anecdotes about asking a bunch of free beta users to start paying for their software. The conversion rate was awful. When we first turned on our premium offering, we were struck by the same thing. We opened the floodgates for paying customers and found that almost none of our free users made the switch.
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Freemium Founders: Start Charging for Things Today! – Tony Wright dot com Sawickipedia: I’ve heard similar feedback from social gaming companies who are charging for virtual goods. Essentially all the users who are used to the site/game/goods being 100% free, assume it always will and don’t adjust well to the change. To the new users who show up after the payment gateways are added paying is a part of the experience so they pay if they are inclined to pay. So don’t kill yourself converting your existing users, but do kill yourself converting new visitors/users. |
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