Sweet graphic, thanks for that.

Hmm, I've heard it both ways. 'Freemium isn't a business model, it's a marketing tool!' 'Freemium isn't a marketing tool, it's a business model! '

The problem is that we'd like to launch (since we're doing this big press launch and stuff) with a more perfected version of our model, so we want to find the best way that works first before launching, you know?

Thanks very much!

I'd recommend going straight to premium with 30-day trial. Its too much work to segment and manage the fremium feature set.

What do people think about offering $x/yr and $y/mo options? When I see $y/mo in these situations, it reminds me of mobile phone billing scams. My gut feel is that you'd only want $x/yr in this situation. Do Flickr have a monthly option? From memory, they just have 1 year, 2 years and then just mention a monthly cost to demonstrate how cheap it is?

I lean the same way in this situation. You may find giving one choice gets better results than making the user think too much.

>Hmm, I've heard it both ways. 'Freemium isn't a business model, it's a marketing tool!'

I'd say it's a marketing tool if no one else has sold what your offering for free before; so the idea of it being free is engaging and people tell their friends

For a business model I think it only makes sense for products that are easily consumed and need to be accessible with little commitment.

> we want to find the best way that works first before launching

I'm with Steve Blank on this one. You won't find answers in the building. You have to go out and find what people are willing to pay for.