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Adam Kalsey

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17 May 2007

OnStartups discusses the challenges in offering a free service as an introduction to a paid product. A summary of the different problems to overcome:

  1. Finding the right balance of features in the free version.

  2. You still have hardware and infrastructure costs for a free product.

  3. Tech support for free users.

  4. The price increase from free to $$ is steep.

  5. Without enough added value, paid users may revert back to the free product

There’s a valuable discussion forming in the comments, as well.

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