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Kevin Hale Advice | App Monetization | Udacity

  • 0:00 - 0:05
    I guess one question I think I always
    have to talk to people about is
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    when does freemium sort of make sense?
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    Or what is the advantage
    of going with freemium and
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    how is it different from
    other typical models?
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    And then why is it good for
    a subscription software company?
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    The reason you approach freemium
    is because the idea is, one,
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    you approach your free users
    as if they're lead generation.
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    And that they're part of your
    marketing side of the equation,
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    like these people are the ones who
    can get the word out on there.
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    And the most important thing that
    you should be aware of is like.
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    Is the market large enough that
    a small conversion of those people
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    using the product is enough
    to make the company large?
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    So for example, a local bakery can
    only serve people within a small area,
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    their potential market
    size is a lot smaller.
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    So you can't just give ton away for
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    free because that conversion rate
    won't make that business sustain.
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    But when you have an internet
    software company.
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    The marginal cost of replication
    of offering services is very,
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    very cheap and the potential
    size of the market is huge,
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    because it's the whole world,
    everyone on the Internet and
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    those forms are big enough,
    like all of the use cases for it.
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    If you have a software
    that is very niche, and
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    that the cost of each new user or
    free user is extremely high,
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    you want to rethink maybe
    the mechanics of using freemium.
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    Like, it's not a one size fits all for
    every company.
Title:
Kevin Hale Advice | App Monetization | Udacity
Video Language:
English
Team:
Udacity
Project:
UD518 - App Monetization
Duration:
01:21

English (United States) subtitles

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