Member-only story
Signs Your Freemium Model Isn’t Working
Metrics to mind when considering a Freemium Model
Product-Led Growth is not only all of the rage right now, but it is typically an incredibly useful way to get users exited about your product. Like trying on clothes before you buy, freemium lets your users see if it is a fit before they decide to pay for your product. Given that businesses are becoming progressively more expensive to run, getting your user to pay for your product is more important than ever. The future of business though is no longer about getting as many users to sign up as possible but instead more about driving sustainable growth and predictable LTV. As a result of current market shifts, the shape of Freemium is changing. Here are some signs that your Freemium model isn’t working in our current market conditions.
Your Churn is High
This might seem obvious but it was common practice not that long ago to focus almost solely on user signups. It used to be that the amount of users a company had signing up consistently was a leading indicator of growth but now that funding was becoming a lot more selective, user sign ups don’t matter if you can’t keep those users around. Valuations were so focussed on the potential of a company that they tended to drive startups and scaleups toward showing growth in number of sign…
