Loading...
Answers
MenuHow do you monetise an audience you have grown?
Answers
What you've already done is a great first step. Here are two additional ways you can improve conversion:
A)
Right now you have two options
- Free
- $ + pro features
To get more people to select option two, you can add a third option. This third option is a 'dummy option', you won't be expecting many or any people to actually choose it. It's just there to make use of a known way in which the human brain makes decisions. The third option should cost more than [option 2], maybe 1.5X the cost. The third option should be [option 2]+anything you can think of that could possibly add any amount of value. For instance, maybe it's access to a special "pro-user FAQ", I don't know exactly what your services are so you'll obviously know better. When this third option is present users will see the middle option [option 2] as a good deal, or at least a better deal than they had previously seen it as. This will lead to higher conversion.
B)
This method is pretty commonly known and used, but maybe you haven't implemented it yet.
Studies have repeatedly shown that the human mind is more inclined to fear loss than to the seek gain.
So make the pro version of all your services available for free for one month. This will accomplish two things.
- Once they have signed up for free, they will have a lower likelihood of canceling than the initial likelihood of them signing up.
- In this process you will be collecting a ton of data on what your users want / don't want.
Only notify existing users about this free offer through email (do not advertise it on the site), and mention in the email that it's because they've already given you something, and they're already committed to you to some extent ("we love how you have been using our products", or "because you've such a great user for such a long time").
To use the pro version users will have to give you credit info, and start billing them if they don't cancel within a month. Make sure that if they cancel you have a question about why they are canceling. It may be because 1) they don't want to pay that much, 2) you're missing things that people want ("I wish you had this feature"), or 3) you have some things that people don't want ("there's a bug when I do this"). If it's #1, then you can start advertising to a new user base, or make your prices cheaper, and if it's #2 or #3 you can have your devs fix things.
_Only_ notify the users that are not currently paid subscribers (if send the email to paid subscribers too they will be pissed that they aren't getting a free month too). Still though, there is a danger that your existing paid customers might find out. So to avoid potentially pissing them off, you can send each of them and email offer to use a service that they are not currently paying for free for a month.
C)
If you want to go more in depth into these methods and additional methods we can talk about it,
Some thoughts...
- Free users are more like followers than paid users. Need to learn what paid users want. It is a very important distinction.
- When you say you chose best performing freebies, is that defined from use, your perspective, customer discovery???
- What pain are you solving with the free?
- What pain you solving with the premium version?
- Have you created a vitamin or a pain killer?
Let me know if you want to learn how to do great customer discovery and scale.
Hello,
I see the attention here is a lot on the product but, in order to maximize the conversion rate you need 3 things:
- a good product
- a good marketing and engagment strategy
- a GREAT sales team and pricing policies.
I developed many products and built several sales teams and the relationships between who creates the product and who sells it (sales or marketing) is really important. If you wish, I can give you a piece of advice on the matter!
Best,
Marco
Related Questions
-
What percentage of VC funded startups make it to 100m+ revenues in 5 years or less?
100M+ in revenues in 5 years or less does not happen very often. As an example of one sector, here is an interesting data visualization (circa 2008) of the 100 largest publically traded software companies at that time that shows their actual revenue ramp-ups from SEC filings (only 4 out of these 100 successful companies managed this feat, which themselves are an extremely small percentage of all of the VC-funded software companies): How Long Does it Take to Build a Technology Empire? http://ipo-dashboards.com/wordpress/2009/08/how-long-does-it-take-to-build-a-technology-empire/ Key findings excerpted from the link above: "Only 28% of the nation’s most successful public software empires were rocketships. I’ve defined a rocket ship as a company that reached $50 million in annual sales in 6 years or less (this is the type of growth that typically appears in VC-funded business plans). A hot shot reaches $50m in 7 to 12 years. A slow burner takes 13 years or more. Interestingly, 50% of these companies took 9 or more years to reach $50m in revenue."MB
-
What does it mean to 'grandfather you in' in the tech world?
It stands for allowing someone to continue doing or use something that is normally no longer permitted (due to changing regulations, internal rules etc.)OO
-
What is the average series A funding round at pre revenue valuation for a enterprise start up w/cutting edge tech on verge of our first client.
With all respect to Dan, I'm not seeing anything like that. You said "pre-revenue." If it's pre-revenue and enterprise, you don't have anything proven yet. You would have to have an insanely interesting story with a group of founders and execs on board with ridiculous competitive advantage built in. I have seen a few of those companies. It's more like $3m-$5m pre. Now, post-revenue is different. I've seen enterprise plays with $500k-$1m revenue/yr, still very early (because in the enterprise space that's not a lot of customers yet), getting $8m-$15m post in an A-round. I do agree there's no "average." Finally, you will hit the Series A Crunch issue, which is that for every company like yours with "cutting edge tech" as-yet-unproven, there's 10 which also have cutting edge tech except they have customers, revenue, etc.. So in this case, it's not a matter of valuation, but a matter of getting funded at all!JC
-
What tools to use for mobile Prototyping ?
My 2 favourite are: - www.uxpin.com - www.flinto.com Flinto is by far my favorite for mobile. I also us www.balsamiq.com for anything wireframe. Sometimes I jump into Sketch http://www.bohemiancoding.com/sketch/ for more high fidelity mockups using their Mirror feature http://www.bohemiancoding.com/sketch/mirror/ Hope that helps. P.S. There's a tonne of Mobile UX experts on Clarity, many $1/min - call them, you'll learn so much. my2cents.DM
-
What is a normal churn rate for b2b saas company with an average monthly revenue of $850 per customer? Is 10% of the total monthly sales high or low?
10% of the total monthly sales churning on an absolute basis is near fatal. That means that within 5 months, you have 50% absolute churn per year, which reveals fundamental flaws with the service itself. Anything above small single digit churn is telling you and your team that customers are not seeing enough value in your product. I'd start by doing as many exit interviews as you can with those that have churned out, including, offers to reengage at a lower price-point while you fix the issues that matter to them. Happy to talk through this in more detail in a call.TW
the startups.com platform
Copyright © 2025 Startups.com. All rights reserved.