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Jul 162012
 

In earlier posts, I asked if Freemium pricing was just a gimmick, and then looked at some of the basic Do’s and don’ts of the Freemium Model. In this article. I am going to focus on  some of the strategies you can use to increase conversion rates, and get more of your customers to pay.

Strategy 1. Just get people to sign up. The first step in moving users to your paywall is to make them users.  So you need to get them to sign up.  Make it simple, make it no risk.   Take a look at the home page of Constant Contact, one of the pioneers of Freemium pricing.

 

 

 

 

 

 

 

 

Notice that they do not list plans or pricing.  Their call to action is a very simple “Get Started – No Risk, No Credit Card” When you click that link you come to this page.

 

 

 

 

 

 

 

Notice that there is still no mention of plans or prices, no place for a credit card.  Constant Contact wants to get you into the system, and they want to reduce barriers to get there.  Constant Contact does not make it easy for you to find the prices before you sign up.     In order to find out what the different plans cost, I had to go to the help menu -and the FAQ tab.   Another example of using this strategy effectively comes from DropBox.  Their home page is remakably  simple with a very limited number of choices.  You can sign in, watch a video,  sign up, or download the app.

 

 

 

 

 

 

 

Again, there is no mention of plans or pricing.  In fact, for Dropbox in order to GET the pricing at all, I needed to sign up and sign in.  I could not find pricing though any other means.

 

Strategy 2  Downplay the Free Offer.

If your free offer is good,  you will get lots of attention for it.  But you want the emphasis to be on the paid plan.  Take a look at what Assembla does.  On the home page, there is no mention of the free plan, only a free trial.

 

 

 

 

 

 

 

Now take a look at plans and prices.   What you can see is that the free plans are set off from the paid plans.  The idea is that the paid plans are of a different category than the free plans.

 

 

 

 

 

 

 

Strategy 3.  Have limited number of plans and options

Research has shown that when presented with too many choices, people freeze, and do not make a choice at all.  This is Wufoo.  Notice that they have the free plan, and only 4 paid plans.  I think that is the maximum number of options to make available.  I prefer three.   The other thing to note is that the plans go from most expensive to least expensive from left to right.  That is the way our eyes read the page.  So the first plan that people will see is the most expensive plan,  and that becomes the “anchor” against which the cost of the other plans is measured.

 

 

 

 

 

 

 

 

Strategy 4.  The reverse volume discount.

Does your product provide more value as the number of users increases?  Does your product promote teamwork or sharing?   The charge more per user for larger purchases.  Assembla’s single plan is $19 for 20 users or $0.95 per user.   But their group plan (designated the best value) is $49 for 40 users or $1.23 per user.

Strategy 5.  Move the free users towards the Paywall

This really depends on your product.  Some of the best Free products move users toward the paywall as they use the product more.  Hootsuite’s free product is great.  But if you really want to do a lot with it, you need to go to the Pro plan

 

 

 

 

 

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