Thoughts on Freemium Model

These 2 days, the topic of Freemium model surfaced and was putting quite some thoughts on it.

Eric Ries is the one that popularize the concept of lean startup and he put it in his book: “If you want to charge, charge from day 1”. Here’s 2 great article on lean startup:

  1. 5 Entrepreneurs Who Inspire Strategy at Zapier
  2. Bootstrapping a Lean Startup

So when you tie back to the topic of freemium model, it means that there should not be a freemium model, because ultimately, user when they get used with the idea of free stuffs, you will be surprised by the converting users who actually are willing to upgrade to the premium account. Which brings to another point which was repeatedly brought up today at Startup Asia, where the judges would ask the pitching startups about their market size and how many users would actually pay to upgrade their freemium account, because essentially, everyone is adopting freemium model right now.

A lot of them couldnt provide a precise answer.

So should startup charge their users from day 1?