S2E17 You Pay Peanuts, You Get Monkeys

ProfitLed Podcast

15 years ago, Dropbox spread like wildfire with their freemium product and that gave us the impression that free = more users. It deluded companies to think that giving something away for free is a go-to-market strategy, when it’s far from that.
Giving away something for free has many negative implications that aren’t often talked about. The most irritating one being the fact that it attracts the worst customer profiles. The people who are least tech savvy, most time consuming on support, and never end up converting.
On this episode, Melissa and Todd share stories about the different campaigns they tried to get users into eWebinar and why removing price friction is one of the worst things you can do for your business..
Takeaways:
• How price perception affect how people evaluate products
• Types of users who have never activated on our platform
• Why free users are the worst and suck all your time and energy
• Reasons we no longer offer discounts, no exceptions
• What happened when we charged more and shortened trial period

Contact ProfitLed

• Tweet us at @profitledfm.
• Find show notes of each episode on ProfitLed.fm.

Connect with our host

• Follow Melissa Kwan on LinkedIn where she share stories & lessons from her founder journey weekly.
• Follow @themelissakwan on Instagram, TikTok, Twitter and YouTube where she shares short videos of business advice and other truth-bomb sound bites.

This podcast was brought to you by eWebinar.
Learn more at ewebinar.com and find out how you can turn pre-recorded videos into automated webinars that perform better than a live webinar.
Thanks for listening!