Figuring Out Freemium: How B2B SaaS CEOs Should Assess the Freemium Opportunity

Topics: Customer Marketing / Sales Products / Services

Figuring Out Freemium

Software-as-a-service (SaaS) product adoption has exploded over the past 10 years, with the average business spending $343K on SaaS products in 2018, a 78% increase from the year prior. Much of this adoption has been driven by SaaS companies offering freemium or free trial versions of their product. With freemium, potential customers can demo certain features of the product for free before deciding if they are interested in making the full investment in the subscription.

The freemium model makes sense, as it offers many advantages for customers. How should CEOs of paid B2B SaaS companies decide whether to offer a freemium version of their product?

MBA Fellow, Ryan Milligan T’19, developed a framework to help B2B SaaS CEOs assess the freemium opportunity and make the decision that will grow their business. Specifically, the paper is designed to help you:

  • Determine the viability of a freemium model for your business
  • Demonstrate the value of a free product and a corresponding path to upgrade to a paid product
  • Outline considerations and imperatives for the pursuit of the freemium path, including data storage, customer success, and customer acquisition

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