That’s the money shot there. Awesome write-up from a company that is in a similar situation to my startup. If you are considering not doing a freemium offering, check this out.
mite.blog. Facts & figures: The first 20 months of our small SaaS start-up going for premium-only instead of freemium
Subscriptions are the New BLACK. (+ why Facebook, Google, & Apple will own your wallet by 2015) – Master of 500 Hats
I’m on a redeye to NYC, supposed to be working on a presentation i’m giving in a few hours… but fuck it, i can’t get this outta my head, so here we go.
(note: extremely raw, uneven, long, 1st draft publish & shoot; will revise l8r)
ASSERTION #1: The default startup business model from 2000-2009 was based on growth (aka acquisition) and CPM- or CPC-advertising
ASSERTION #2: The default startup business model for 2010 & beyond will be subscriptions and transactions (e-commerce, digital goods).
This rant from Dave McClure has some useful insights. Just as a head’s up, the post has some colorful language, and I’m not just talking about font colors.
This seems to be a pretty well thought out and detailed summary weighing the cost of getting a customer to the profit that is generated by them. This is looking at that next step that follows the customer based development process, and is looking at how to define what is a viable growth strategy.
It also includes some useful interactive spreadsheets, so you can play with your numbers in the context of the post.