Your progress has stalled, but you still need to speed up your development.
You’re thinking about freemium more often.
Since switching to a freemium model, MailChimp has seen five-fold growth in user numbers in a single year.
A profit of over 650% was reported.
You should immediately make the transition to freemium pricing. Right?
Wrong.
The most important component is why MailChimp made the change to freemium.
I’ll tell you what happened to them:
1.First, they ignored freemium for an entire decade (from 2001 to 2009). They had their sights set on increasing revenues.
2.After making enough money in 2009 to consider freemium, they did the maths:
2.1 They were aware that the median ratio of free to paid customers was 9%.
2.2 The ratio of free users to premium users was determined to be 10 to 1.
2.3 They have given careful consideration to how it will affect deliverability, potential abuse vectors, manpower needs, and so on.
2.4 Their numbers suggested there was hope.
3.They conducted numerous price A/B tests and monitored:
3.1.Earnings Potential,
3.2 Alterations in Order Quantity .
3.3.Demotions
Money-Back Guaranteed.
4 after compiling a mountain of price data, they concluded that freemium generated the most revenue for their business.
5.This is why they opted for freemium instead,
Source: blog.mailchimp.com