SaaStr

JULY 2, 2019

Join Kevin Egan, Slack’s VP of North American Sales and Dannie Herzberg, Slack’s Director of Sales as they walk you through Slack’s Freemium to Enterprise strategies. We’re here to talk for the next 25 minutes or so about our experience going from freemium to enterprise. Want to see more content like this?

Follow-up 60

Follow-up Go To Market Technology Technology 60

SaaStr

OCTOBER 10, 2019

Freemium can help software companies gain users quickly—but what happens when it’s time to scale back or up? Free services must meet users’ basic needs, while also encouraging them to upgrade to the paid version once those basic needs are met. So let’s talk Freemium. Want to see more content like this?

Referrals 55

Referrals Start-ups Follow-up Product 55

SaaStr

MAY 2, 2019

In the case of Slack, only 8% of their revenue is freemium per se — but free users are the largest source of leads for their 575+ $100k+ deals. In those cases, the self-service option often works “worse” than a human-driven one. The post When does Freemium also work to generate leads for enterprise prospects?

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Prospecting Service Process Product 40

Sales Hacker

SEPTEMBER 22, 2023

Hubspot recently released a blog on how to effectively optimize the freemium conversion rate; see link/visual below: 5 key steps in the process: 1. To improve freemium conversion rates, it’s essential to set appropriate product limitations for free accounts. Set the right product limitations for your free account.

GTM 89

GTM X-functional Inside sales User Experience 89

ConversionXL

SEPTEMBER 20, 2018

Trying out a product through a free trial or freemium model is less hassle and can help you decide quickly on a product. Gokul Rajaram of Square, another example, summarizes the rationale: “Truly great software businesses are self-service first.”. This doesn’t apply just to small and mid-size businesses. Do you agree?

Go To Market 289

Go To Market GTM Profit margin Education 289

ConversionXL

JUNE 16, 2022

While both effectively drive revenue and enhance the customer experience, upselling is ideal for companies with a single product or freemium model. Calendly uses a freemium model, offering a free tier and encouraging users to upgrade for access to advanced features. These tactics are upselling and cross-selling (respectively).

Cross-sell 155

Cross-sell Sell Up-sell Technique 155

Hubspot

NOVEMBER 14, 2023

The future is self-service, and salespeople must adapt. 83% of sales professionals say that when they speak to prospects for the first time, they are already "very" to "somewhat" knowledgeable about their product or service. How can salespeople provide value beyond what a prospect can find on their own?

Consult 70

Consult Drivers/motivators B2C Education 70

SaaStr

AUGUST 5, 2019

But be aware of the trade-offs to focusing on this as your core KPI on a free trial / freemium funnel. The post How many people maintain their subscription services after the free trial? Working to improve conversions of course, in isolation is good. View original question on quora. appeared first on SaaStr.

Service 68

Service Conversion Growth Product 68

SaaStr

NOVEMBER 15, 2020

The lure of freemium (like The Force) is strong. Yes, Twilio started off as self-service. Yes, Twilio started off as self-service. And Box’s revenues are now 99% through the sales team, from 0–1% when it started as a pure freemium product. No headaches. Customers try and buy all on their own. Like magic. For a while.

Cross-sell 135

Cross-sell Negotiate Sales Outside Sales 135

SaaStr

MAY 19, 2021

For those to average to 107%, NRR is likely around 85% for self-service and < 10 seat deals (about the same as Squarespace ). Like Atlassian, Monday waited to launch a Free plan and hasn’t traditionally been a freemium play. Not all SMB leaders have to be freemium to win. #7. The remaining 35% is from smaller deals.

Legal 144

Legal Cross-sell Government Launch 144

SaaStr

JULY 5, 2022

By moving from Freemium to “Contact Me” only (albeit with transparent pricing), sales went way, way up. Let’s take a few look at some public companies as examples: Asana: at $250m in ARR, 60% of their customers were still self-service , despite going more and more upmarket. And it worked.

Sales 117

Sales Engineering Growth Price 117

SaaStr

OCTOBER 26, 2022

That’s Freemium at scale. We had a classic SaaStr post sharing how it can take 50 million free users to make freemium really work, and Wix’s math ties to it. I hope that doesn’t impact service, but I worry. Despite being freemium, Wix’s business model isn’t hyper efficient. 5 Interesting Learnings: #1.

E-commerce 88

E-commerce Cross-sell Growth Price 88

SaaStr

JANUARY 23, 2021

Over 3m+ sites and services use Cloudflare, and then 736 of them end up paying $100k+. Even with a freemium model, sales & marketing expenses are still “normal” at 45% of revenues. Freemium can help a lot with efficiency, but the impact isn’t always as dramatic as we might expect.

Cross-sell 113

Cross-sell Growth Up-sell Start-ups 113

ConversionXL

OCTOBER 8, 2021

And what if your product is freemium (i.e. The freemium version influences acquisition of new users. Some businesses even include a portion of freemium development costs (such as server maintenance) in their CAC. Freemium users also have a much longer conversion funnel or “ penny gap ” compared to free trial users.

Customers 135

Customers Price Strategize Cross-sell 135

Martech

SEPTEMBER 16, 2022

Salesforce unveiled an array of new automation features for its marketing, commerce, service and sales offerings this week. For example, a company could attract freemium software users with a personalized enterprise software upgrade journey across video, email and mobile. Dig deeper: Salesforce launches pilot NFT cloud.

Retail 95

Retail Technique Sales Launch 95

SaaStr

MAY 15, 2024

By 2030, consumer spend on digital goods and services is predicted to be $2.2 As you think about conversion to paid or freemiums, try not to leave any uncaptured value on the edges. You can tune into Workshop Wednesday every single Wednesday at 10 a.m. PST to connect with top execs from companies like. Back to the consumer market.

Growth 105

Growth B2B UX B2C 105

SaaStr

JANUARY 23, 2021

Over 3m+ sites and services use Cloudflare, and then 736 of them end up paying $100k+. Even with a freemium model, sales & marketing expenses are still “normal” at 45% of revenues. Freemium can help a lot with efficiency, but the impact isn’t always as dramatic as we might expect. #5.

Growth 104

Growth Up-sell Start-ups Product 104

SaaStr

APRIL 29, 2021

Freemium and self-service are great and you and I love to buy products that way. Squarespace is IPO’ing at $700m+ without a salesteam, all freemium. Can some services scale > $299/month without salespeople? And making sure they take that jump. And yes, there is a bit of friction between those 2 parts of the job.

Commission 108

Commission Legal Contact Closing 108

Salesforce

MAY 25, 2023

It’s an approach that Gartner predicts 95% of software-as-a-service (SaaS) providers will use by 2025 for new customer acquisition. Once a target account signs up for a free trial or “freemium” version, you begin their seamless onboarding experience. What customer types would be best served by a freemium model?

Growth 98

Growth Product Customers B2B 98

SaaStr

DECEMBER 19, 2019

Freemium remains the source of 60% of HubSpot’s customers, even at almost $1b in ARR. There are many cases of freemium’s contribution slowing down (e.g., But Hubspot, Zoom and others have challenged the idea that freemium can’t scale well past $1b in ARR. This is less common in SaaS.

Cross-sell 126

Cross-sell Price Growth Up-sell 126

SaaStr

FEBRUARY 19, 2021

Halligan: “Marketers like services. You can very easily get wrapped up in doing all of these services. We could have easily built a giant services company. Dharmesh and I knew a lot about services and a lot about how to do SEO and content marketing. Can you do our social media posts?

CRM 111

CRM Up-sell Technique Start-ups 111

SaaStr

APRIL 28, 2019

As part of our new 5 Interesting Learnings series, here are a few: Freemium continues to scale for Slack, but now more as a lead gen tool. Many folks think that Freemium has a natural ceiling, and perhaps sometimes it does. Slack notes this is now the primary value of self-service (lead generation vs. direct conversion).

Contract 110

Contract Lead generation Growth Service 110

Partners in Excellence

SEPTEMBER 15, 2022

My inbox is filled with emails with people pitching their products and services. Most are about products and services that are not applicable to our business—we don’t manufacture anything, so I’m really not interested in supply chain management solutions. But maybe even that is overthinking it.

Customers 92

Customers Manufacturing Pitch Promote 92

Hubspot

MAY 5, 2023

If a prospect feels confident about your product or service, it becomes much easier to pull the trigger. For instance, consider providing additional services or perks, such as extended free trials or complimentary tech support. Another option is the freemium model , which divides users into a free or premium tier.

Profit margin 75

Profit margin Objectives and Key Results Cross-sell Pitch 75

SaaStr

JANUARY 3, 2021

It was clear to me that our freemium offering, priced at from $0 to $19/month, couldn’t really support a traditional inside sales team. First, if you don’t service those $1k ACV leads, you are wasting them. One question I struggled with a lot in the early days was what price points supported inside sales reps.

Product 133

Product Inside sales Price Closing 133

SaaStr

MAY 28, 2021

Vimeo is certainly an interesting web service, and we’re excited to have CEO Anjali Sud presenting at 2021 SaaStr Annual Sep 27-29 in SF Bay Area! self-service subscribers at an average of $214 year, paired with 3,300 enterprise customers that go through the sales team that pay $22,000 a year on average. It has both (x) 1.5m

Growth 109

Growth Service B2B Up-sell 109

Hubspot

MAY 28, 2019

The concept of price elasticity helps you understand if your product or service is sensitive to price fluctuations. Many can and should be combined when setting prices for your products and services. A cost-plus pricing strategy focuses solely on the cost of producing your product or service, or your COGS.

Price 97

Price Retail Profit margin Gaming 97

SaaStr

OCTOBER 25, 2021

. “Unless your product has a huge TAM to cast your net in, no-touch onboarding, and an obvious first “wow” moment you’re trying to reach, free trials and/or freemium pricing does not work well.” A good reminder that Freemium doesn’t really work as a business model without a mass-scale product.

Price 115

Price Contract Referrals B2B 115

SaaStr

DECEMBER 7, 2020

You go to a web service. And the “problem” with this is that so many SaaS entrepreneurs, especially those coming into sales and SaaS for the first time, and/or with a bias toward freemium-type products … design for the 15%. Because they provide 85% of the world a very valuable service. What do you do?

Contact 144

Contact Price Up-sell Service 144

SaaStr

APRIL 6, 2019

Viral and freemium works at scale for Zoom – still. Many will tell you freemium and viral don’t scale in SaaS, that they peter out. Viral and freemium are key to Zoom’s capital efficiency. But if you can find a way to go upmarket and still service the SMBs, too — magic can happen.

Contract 92

Contract Growth Engineering Start-ups 92

Sales Hacker

MARCH 5, 2021

After noticing that some of these profiles match your ideal buyer persona are complaining about a competitor’s feature or asking questions related to your product/service, you can refer them to your sales team, who can then reach out to warm leads before they get picked up by a competitor.

B2B 100

B2B Pipeline Sales Referrals 100

Partners in Excellence

JUNE 19, 2022

They may be semiconductors, parts, medical devices, hardware technologies, networking platforms, consumer products, services of all kinds, sanitation products, and the list goes on. And while some sort of “freemium” is key to PLG, how to we adapt some of the principles in a non freemium world.

Manufacturing 68

Manufacturing Quota Growth User Experience 68

SaaStr

JANUARY 6, 2021

So let’s take a look at 5 Interesting Learnings at ~$800,000,000 in ARR: Box went enterprise well over a decade ago, but 45% of its revenue is still from SMBs, Mid-Market and Self-Service. 9% of sales are non-sales driven, which means almost $80m of ARR is still basicaly freemium / self-service. This surprised me a bit.

Growth 114

Growth Price Service Product 114

SaaStr

JUNE 20, 2021

That’s why they offer freemium-style, self-service models for customers who want to try the product out. To prove their value and validate their pricing, they examine their customer’s resulting ROI and point to how Klaviyo directly influences their higher returns.

Objectives and Key Results 121

Objectives and Key Results Price Retail Consult 121

Martech

AUGUST 10, 2022

Service-level agreements (SLAs). 24/7 service vs. standard business hours). Will that freemium offer carry over during the next renewal? That said, the wording in a contract or master service agreement won’t change. . Further, while annoying, processing fees aren’t unheard of. Then, time goes by.

Contract 106

Contract Contact Price Legal 106

Hubspot

AUGUST 3, 2023

Consider a Freemium Model If we’re looking into what makes a successful AI product sale, it makes sense to look at ChatGPT, which gained one million users within five days of launch. A freemium model may help your sales personnel reach a wider audience, those who don’t quite have the budget or need to be persuaded by what your tool can do.

Product 64

Product Sell Cross-sell Education 64

SaaStr

APRIL 16, 2023

Stewart : We introduced a new tier, so we started with freemium model with a single tier. My understanding of Yammer, and maybe it’s a little bit apocryphal, is that everyone looked at Yammer as this amazing freemium product that went crazy in the day. Some of your original vision was all freemium, very much akin to Stewart.

Start-ups 135

Start-ups Real Estate Product Networking 135