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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.

Comments

Mike
May 17, 2007 3:39 PM

Well, at the end of the day you play poker because it is fun, not because it will make you rich. It is the game that brings us to the table. Thoughts Mike

This discussion has been closed.

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