Why Freemium Isn’t For Everyone

November 29, 2013

The fact of the matter is, freemium will only work for you if your product lends itself to a very specific set of circumstances.

If it sounds too good to be true, well, it just might be. Even if you know similar companies are offering a freemium model for their SaaS service with spectacular results, you still obviously can’t just roll out your own model and expect the same.

Requirements for Freemium

Dan Rodrigues, CEO of Kareo, explains why the model isn’t for everyone and what shares his experiences with what you have, baseline, in order to have a hope for success. Essentially, your product needs to speak for itself in order to work as a freemium product, says Rodrigues. The more work required, in any realm of delivery or usage, the less likely it is to be a success. Watch the video for more insights.

More Advice from Dan

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Photo by: Tommy Clark

Founder & CEO

<strong>Dan Rodrigues</strong> is the founder and CEO of <a href="http://www.kareo.com/">Kareo</a> (disclosure: Kareo is an OpenView portfolio company). He founded the company in 2004 with a vision of simplifying medical offices with web-based medical billing software that replaces the expensive and complex medical billing and practice management systems. Prior to Kareo, he co-founded both software consulting firm Skematix and search engine Scour.