On Converting FreeUsers to Paid Users
Kevin Hale
Future of Web Apps · Miami · Feb 23, 2009
particletree.com
treehousemagazine.com
wufoo.com
150,000+1.3 million+
2 million15 million
Individuals, Developers, Designers, Non-Profits,
Teachers, Students, Universities, Research, Real Estate, Marketing,
Healthcare, Banks, SMBs
Why are you here?
Freeloaders
Overcoming the Power of Zero
InterestNo Alternative
UrgencyConveniencePeer Pressure
NoveltyStatus
What about software?
When copies are free, you need to sell things which
cannot be copied.
What can’t be copied?
Trust
ImmediacyPersonalizationInterpretationAuthenticityAccessibilityEmbodiment
PatronageFindability
Maximizers vs Satisficers
Best PriceBest Product
Best Overall Solution
Excercise 1
ImmediacyPersonalizationInterpretationAuthenticityAccessibilityEmbodiment
PatronageFindability
You make what you measure.
Point
Point
Start
End
Count
Log = Action + Timestamp
ActionTimestamp
ReferrerIP Address
Cookie / SessionServer DataClient Data
ViewsClicks
SubmitsKeystrokes
Positive / NegativeLikert Scale
RatingsMultiple ChoiceOpen Feedback
The Ultimate Question
Tools
google.com/analytics/
omniture.com
haveamint.com
crazyegg.com
clicktale.com
wufoo.com
surveymonkey.com
formassembly.com
dabbledb.com
google.com/talk/service/badge/New
Excercise 2
Your Economic Engine
Benchmarks
Web App Autopsy
SXSW 2007
PHP
6 months to launch
Launched : July 2006
3 Employees
Ruby on Rails
3 months to launch
Launched : July 2005
6 Employees
Java
5 months to launch
Launched : February 2004
~30 Employees
.NET
3 years to launch
Launched : 1996
50 Employees
regonline
Conversion per 100 Visits
Free Paid
7.00% 1.00%
11.00% 1.00%
8.00% N/A
1.52% 1.14%regonline
Shareware0.5%
Dropsend1% - 2%
Casual Download Games2%
Other Freemium ServicesRange from 1.5% to 5%
Average Overall less than 3%
Ning3%
Flickr5-10%
AdultFriendFinder10% - 22%
Habbo : 10% of playersClub Penguin : 25% of uniquesRunescape : 16.6% of uniquesPuzzle Pirates : 22% of players
Top 10
TurboTax Online70%
Things to Keep in Mind
Seasonal Effects
Best Worst
Mar Dec
Jan Dec
Jan/Feb Dec
Sept Decregonline
Early Adopter Frugal Factor
7,000 invitations sent to potential Beta Testers.
Only 3,500 created an account.
Only 50 of them became customers (and we o!ered them half o!).
Moving the Needle
The Funnel
Reduce Friction
Number of Steps
Label Placement
Multiple Columns
Excercise 3
Increase Awareness
Excercise 4
On Promotion Codes
Successful Changes
Powered By Logo339% increase in click through
Video Spokesperson11% increase in registrations
Why Register Online? 6% increase in registrations
regonline
Customer Lifetime Value
Customer Referral Value
The Original
The Winner
Excercise 5
Off the Funnel
Best PriceBest Product
Best Overall Solution
Relationshipsas a Metaphor
Intimacy Passion
Commitment
NonloveLiking
Infatuated loveEmpty love
Romantic loveCompanionate love
Fatuous loveConsumate Love
Intimacy Passion
Commitment
Existing Users :: Marriage
Dr. John Gottman
Everyone fights.
Cost / BillingUsers’ UsersPerformanceRoadmapOthers
MoneyKidsSex
TimeOthers
How it’s done.
When Things Go Wrong
Enlightened Hospitality
Importance of Fun
Keeping the Romance Alive
Bibliography
Questions?
Thanks!