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	<title>Comments on: Freemium Business Model</title>
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	<link>http://tynerblain.com/blog/2009/02/24/freemium-model/</link>
	<description>Software product success.</description>
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		<title>By: Scott Sehlhorst</title>
		<link>http://tynerblain.com/blog/2009/02/24/freemium-model/comment-page-1/#comment-575470</link>
		<dc:creator>Scott Sehlhorst</dc:creator>
		<pubDate>Thu, 18 Mar 2010 21:26:21 +0000</pubDate>
		<guid isPermaLink="false">http://tynerblain.com/blog/?p=840#comment-575470</guid>
		<description>&lt;span class=&quot;topsy_trackback_comment&quot;&gt;&lt;span class=&quot;topsy_twitter_username&quot;&gt;&lt;span class=&quot;topsy_trackback_content&quot;&gt;@recurly more than just #marketing ,freemium is pwrful biz model - see http://bit.ly/brPU0l and http://bit.ly/abkeDG 4 why&lt;/span&gt;&lt;/span&gt;</description>
		<content:encoded><![CDATA[<p><span class="topsy_trackback_comment"><span class="topsy_twitter_username"><span class="topsy_trackback_content">@recurly more than just #marketing ,freemium is pwrful biz model &#8211; see <a href="http://bit.ly/brPU0l" rel="nofollow">http://bit.ly/brPU0l</a> and <a href="http://bit.ly/abkeDG" rel="nofollow">http://bit.ly/abkeDG</a> 4 why</span></span></span></p>
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		<title>By: Scott Sehlhorst</title>
		<link>http://tynerblain.com/blog/2009/02/24/freemium-model/comment-page-1/#comment-485794</link>
		<dc:creator>Scott Sehlhorst</dc:creator>
		<pubDate>Thu, 26 Mar 2009 04:17:56 +0000</pubDate>
		<guid isPermaLink="false">http://tynerblain.com/blog/?p=840#comment-485794</guid>
		<description>@Alex: Thanks!  I think you&#039;re off to a great start with the first article on your blog, and I look forward to seeing more!  Since you have a blog, you have a product.  You&#039;re sharing insights, and facilitating a discussion.  It might not be a revenue-generating product, but it is a product.  Good luck!</description>
		<content:encoded><![CDATA[<p>@Alex: Thanks!  I think you&#8217;re off to a great start with the first article on your blog, and I look forward to seeing more!  Since you have a blog, you have a product.  You&#8217;re sharing insights, and facilitating a discussion.  It might not be a revenue-generating product, but it is a product.  Good luck!</p>
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		<title>By: links for 2009-03-24 &#8226; Bare Identity</title>
		<link>http://tynerblain.com/blog/2009/02/24/freemium-model/comment-page-1/#comment-485485</link>
		<dc:creator>links for 2009-03-24 &#8226; Bare Identity</dc:creator>
		<pubDate>Tue, 24 Mar 2009 23:55:57 +0000</pubDate>
		<guid isPermaLink="false">http://tynerblain.com/blog/?p=840#comment-485485</guid>
		<description>[...] Freemium Business Model &#124; Tyner Blain The freemium model is one where the company offers two (or more) versions of a product. The basic version is free to use. You have to pay for the premium version. The goal of this article is to answer the product management question, “Should you create a freemium business model?” (tags: opensource businessmodel oss pricing scottsehlhorst) [...]</description>
		<content:encoded><![CDATA[<p>[...] Freemium Business Model | Tyner Blain The freemium model is one where the company offers two (or more) versions of a product. The basic version is free to use. You have to pay for the premium version. The goal of this article is to answer the product management question, “Should you create a freemium business model?” (tags: opensource businessmodel oss pricing scottsehlhorst) [...]</p>
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		<title>By: Alex Papworth</title>
		<link>http://tynerblain.com/blog/2009/02/24/freemium-model/comment-page-1/#comment-485216</link>
		<dc:creator>Alex Papworth</dc:creator>
		<pubDate>Mon, 23 Mar 2009 09:44:57 +0000</pubDate>
		<guid isPermaLink="false">http://tynerblain.com/blog/?p=840#comment-485216</guid>
		<description>Very timely article for me Scott (only just picked it up I&#039;m afraid!). I run a blog on business analysis which is in its early stages.
I&#039;ve got a long way to go before it compares to yours in terms of its breadth and depth but I shall keep plodding along ;-)

I am starting to think about possible revenue models and this article provides me with some real food for thought. Of course, I don&#039;t have a product yet but I&#039;m thinking about that.

Thanks for all the quality content</description>
		<content:encoded><![CDATA[<p>Very timely article for me Scott (only just picked it up I&#8217;m afraid!). I run a blog on business analysis which is in its early stages.<br />
I&#8217;ve got a long way to go before it compares to yours in terms of its breadth and depth but I shall keep plodding along ;-)</p>
<p>I am starting to think about possible revenue models and this article provides me with some real food for thought. Of course, I don&#8217;t have a product yet but I&#8217;m thinking about that.</p>
<p>Thanks for all the quality content</p>
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		<title>By: Tom Gibson - Creating Outstanding Customer Value</title>
		<link>http://tynerblain.com/blog/2009/02/24/freemium-model/comment-page-1/#comment-481689</link>
		<dc:creator>Tom Gibson - Creating Outstanding Customer Value</dc:creator>
		<pubDate>Sun, 08 Mar 2009 01:33:00 +0000</pubDate>
		<guid isPermaLink="false">http://tynerblain.com/blog/?p=840#comment-481689</guid>
		<description>[...] Freemium Business Model - TylerBlain [...]</description>
		<content:encoded><![CDATA[<p>[...] Freemium Business Model - TylerBlain [...]</p>
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		<title>By: Freemium als Geschäftsmodell &#124; Regelwerk</title>
		<link>http://tynerblain.com/blog/2009/02/24/freemium-model/comment-page-1/#comment-480889</link>
		<dc:creator>Freemium als Geschäftsmodell &#124; Regelwerk</dc:creator>
		<pubDate>Tue, 03 Mar 2009 14:27:59 +0000</pubDate>
		<guid isPermaLink="false">http://tynerblain.com/blog/?p=840#comment-480889</guid>
		<description>[...] zum Artikel [...]</description>
		<content:encoded><![CDATA[<p>[...] zum Artikel [...]</p>
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		<title>By: April Dunford</title>
		<link>http://tynerblain.com/blog/2009/02/24/freemium-model/comment-page-1/#comment-576508</link>
		<dc:creator>April Dunford</dc:creator>
		<pubDate>Tue, 03 Mar 2009 03:44:35 +0000</pubDate>
		<guid isPermaLink="false">http://tynerblain.com/blog/?p=840#comment-576508</guid>
		<description>&lt;span class=&quot;topsy_trackback_comment&quot;&gt;&lt;span class=&quot;topsy_twitter_username&quot;&gt;&lt;span class=&quot;topsy_trackback_content&quot;&gt;aprildunfordRT @sehlhorst New Tyner Blain Article: Freemium Business Model http://tinyurl.com/cm7vkw #prodmgmt&lt;/span&gt;&lt;/span&gt;</description>
		<content:encoded><![CDATA[<p><span class="topsy_trackback_comment"><span class="topsy_twitter_username"><span class="topsy_trackback_content">aprildunfordRT @sehlhorst New Tyner Blain Article: Freemium Business Model <a href="http://tinyurl.com/cm7vkw" rel="nofollow">http://tinyurl.com/cm7vkw</a> #prodmgmt</span></span></span></p>
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		<title>By: Larry McKeogh</title>
		<link>http://tynerblain.com/blog/2009/02/24/freemium-model/comment-page-1/#comment-576509</link>
		<dc:creator>Larry McKeogh</dc:creator>
		<pubDate>Mon, 02 Mar 2009 23:15:14 +0000</pubDate>
		<guid isPermaLink="false">http://tynerblain.com/blog/?p=840#comment-576509</guid>
		<description>&lt;span class=&quot;topsy_trackback_comment&quot;&gt;&lt;span class=&quot;topsy_twitter_username&quot;&gt;&lt;span class=&quot;topsy_trackback_content&quot;&gt;RT @sehlhorst: New Tyner Blain Article: Freemium Business Model http://tinyurl.com/cm7vkw - Finally understand the Suck Threshold&lt;/span&gt;&lt;/span&gt;</description>
		<content:encoded><![CDATA[<p><span class="topsy_trackback_comment"><span class="topsy_twitter_username"><span class="topsy_trackback_content">RT @sehlhorst: New Tyner Blain Article: Freemium Business Model <a href="http://tinyurl.com/cm7vkw" rel="nofollow">http://tinyurl.com/cm7vkw</a> &#8211; Finally understand the Suck Threshold</span></span></span></p>
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		<title>By: Scott Sehlhorst</title>
		<link>http://tynerblain.com/blog/2009/02/24/freemium-model/comment-page-1/#comment-480783</link>
		<dc:creator>Scott Sehlhorst</dc:creator>
		<pubDate>Mon, 02 Mar 2009 22:18:55 +0000</pubDate>
		<guid isPermaLink="false">http://tynerblain.com/blog/?p=840#comment-480783</guid>
		<description>Thanks, Allan!

Here&#039;s the follow-up article on dynamics of viral propagation (from a product management perspective): http://tynerblain.com/blog/2009/03/02/viral-product-management/

Will update the main article now...</description>
		<content:encoded><![CDATA[<p>Thanks, Allan!</p>
<p>Here&#8217;s the follow-up article on dynamics of viral propagation (from a product management perspective): <a href="http://tynerblain.com/blog/2009/03/02/viral-product-management/" rel="nofollow">http://tynerblain.com/blog/2009/03/02/viral-product-management/</a></p>
<p>Will update the main article now&#8230;</p>
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		<title>By: allan</title>
		<link>http://tynerblain.com/blog/2009/02/24/freemium-model/comment-page-1/#comment-480735</link>
		<dc:creator>allan</dc:creator>
		<pubDate>Mon, 02 Mar 2009 17:00:18 +0000</pubDate>
		<guid isPermaLink="false">http://tynerblain.com/blog/?p=840#comment-480735</guid>
		<description>Lovely article. Thanks</description>
		<content:encoded><![CDATA[<p>Lovely article. Thanks</p>
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		<title>By: Michael Ray Hopkin</title>
		<link>http://tynerblain.com/blog/2009/02/24/freemium-model/comment-page-1/#comment-480384</link>
		<dc:creator>Michael Ray Hopkin</dc:creator>
		<pubDate>Sat, 28 Feb 2009 18:32:02 +0000</pubDate>
		<guid isPermaLink="false">http://tynerblain.com/blog/?p=840#comment-480384</guid>
		<description>Scott, great post and very timely. I&#039;m constantly amazed by new ideas that are coming out these days. When most people are hunkering down and looking for ways to protect themselves, entrepreneurs and great thinkers are coming up with new ideas that will drive the next economic upturn. The model you discuss here will no-doubt play an important role. -Michael</description>
		<content:encoded><![CDATA[<p>Scott, great post and very timely. I&#8217;m constantly amazed by new ideas that are coming out these days. When most people are hunkering down and looking for ways to protect themselves, entrepreneurs and great thinkers are coming up with new ideas that will drive the next economic upturn. The model you discuss here will no-doubt play an important role. -Michael</p>
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		<title>By: Scott Sehlhorst</title>
		<link>http://tynerblain.com/blog/2009/02/24/freemium-model/comment-page-1/#comment-480215</link>
		<dc:creator>Scott Sehlhorst</dc:creator>
		<pubDate>Fri, 27 Feb 2009 13:41:43 +0000</pubDate>
		<guid isPermaLink="false">http://tynerblain.com/blog/?p=840#comment-480215</guid>
		<description>Thanks Craig!  Any suggestions on other freemium products to look at?</description>
		<content:encoded><![CDATA[<p>Thanks Craig!  Any suggestions on other freemium products to look at?</p>
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		<title>By: Craig</title>
		<link>http://tynerblain.com/blog/2009/02/24/freemium-model/comment-page-1/#comment-480202</link>
		<dc:creator>Craig</dc:creator>
		<pubDate>Fri, 27 Feb 2009 10:51:41 +0000</pubDate>
		<guid isPermaLink="false">http://tynerblain.com/blog/?p=840#comment-480202</guid>
		<description>Fascinating article Scott.  Thanks for writing it.</description>
		<content:encoded><![CDATA[<p>Fascinating article Scott.  Thanks for writing it.</p>
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		<title>By: Scott Sehlhorst</title>
		<link>http://tynerblain.com/blog/2009/02/24/freemium-model/comment-page-1/#comment-480076</link>
		<dc:creator>Scott Sehlhorst</dc:creator>
		<pubDate>Thu, 26 Feb 2009 15:58:13 +0000</pubDate>
		<guid isPermaLink="false">http://tynerblain.com/blog/?p=840#comment-480076</guid>
		<description>@Patrick - thanks very much, and great questions.  In this model, everything that does not cost extra &lt;em&gt;per new user&lt;/em&gt; is a fixed cost (fixed relative to adding users).  Not only would &quot;before we ever get users&quot; development be a fixed cost, but ongoing development would also qualify as a fixed cost.  If you had to add call center staff as a function of the number of users - say 1000 to 1 or whatever, that would be a variable cost.  The best way to deal with that is to estimate the per-user cost and allocate it - then revisit that allocation as you scale.

Does that help?</description>
		<content:encoded><![CDATA[<p>@Patrick &#8211; thanks very much, and great questions.  In this model, everything that does not cost extra <em>per new user</em> is a fixed cost (fixed relative to adding users).  Not only would &#8220;before we ever get users&#8221; development be a fixed cost, but ongoing development would also qualify as a fixed cost.  If you had to add call center staff as a function of the number of users &#8211; say 1000 to 1 or whatever, that would be a variable cost.  The best way to deal with that is to estimate the per-user cost and allocate it &#8211; then revisit that allocation as you scale.</p>
<p>Does that help?</p>
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		<title>By: Scott Sehlhorst</title>
		<link>http://tynerblain.com/blog/2009/02/24/freemium-model/comment-page-1/#comment-480074</link>
		<dc:creator>Scott Sehlhorst</dc:creator>
		<pubDate>Thu, 26 Feb 2009 15:51:27 +0000</pubDate>
		<guid isPermaLink="false">http://tynerblain.com/blog/?p=840#comment-480074</guid>
		<description>Thanks, Jed, for the additional data!  Amazing that they can get that kind of scale from their people - a testament to the amount of automation involved in providing their support services.</description>
		<content:encoded><![CDATA[<p>Thanks, Jed, for the additional data!  Amazing that they can get that kind of scale from their people &#8211; a testament to the amount of automation involved in providing their support services.</p>
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		<title>By: Justin Pirie</title>
		<link>http://tynerblain.com/blog/2009/02/24/freemium-model/comment-page-1/#comment-576510</link>
		<dc:creator>Justin Pirie</dc:creator>
		<pubDate>Thu, 26 Feb 2009 15:23:01 +0000</pubDate>
		<guid isPermaLink="false">http://tynerblain.com/blog/?p=840#comment-576510</guid>
		<description>&lt;span class=&quot;topsy_trackback_comment&quot;&gt;&lt;span class=&quot;topsy_twitter_username&quot;&gt;&lt;span class=&quot;topsy_trackback_content&quot;&gt;Great short on freemium business model  http://is.gd/kW9B RT from someone! :)&lt;/span&gt;&lt;/span&gt;</description>
		<content:encoded><![CDATA[<p><span class="topsy_trackback_comment"><span class="topsy_twitter_username"><span class="topsy_trackback_content">Great short on freemium business model  <a href="http://is.gd/kW9B" rel="nofollow">http://is.gd/kW9B</a> RT from someone! :)</span></span></span></p>
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		<title>By: Patrick Masi</title>
		<link>http://tynerblain.com/blog/2009/02/24/freemium-model/comment-page-1/#comment-480065</link>
		<dc:creator>Patrick Masi</dc:creator>
		<pubDate>Thu, 26 Feb 2009 13:55:00 +0000</pubDate>
		<guid isPermaLink="false">http://tynerblain.com/blog/?p=840#comment-480065</guid>
		<description>Hey Scott,

Good article at an opportune time - we&#039;ve been considering a similar strategy.  I created a spreadsheet to be able to make the same graphs you did, and I&#039;ve got a question.  Where do you account for R&amp;D in a model like this?  Is development fixed cost, because you only have to do it once?  I&#039;m having a hard time seeing it anywhere else, but maybe I&#039;m missing something.

Thanks,
Patrick</description>
		<content:encoded><![CDATA[<p>Hey Scott,</p>
<p>Good article at an opportune time &#8211; we&#8217;ve been considering a similar strategy.  I created a spreadsheet to be able to make the same graphs you did, and I&#8217;ve got a question.  Where do you account for R&amp;D in a model like this?  Is development fixed cost, because you only have to do it once?  I&#8217;m having a hard time seeing it anywhere else, but maybe I&#8217;m missing something.</p>
<p>Thanks,<br />
Patrick</p>
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		<title>By: Lincoln Murphy</title>
		<link>http://tynerblain.com/blog/2009/02/24/freemium-model/comment-page-1/#comment-576511</link>
		<dc:creator>Lincoln Murphy</dc:creator>
		<pubDate>Wed, 25 Feb 2009 23:20:17 +0000</pubDate>
		<guid isPermaLink="false">http://tynerblain.com/blog/?p=840#comment-576511</guid>
		<description>&lt;span class=&quot;topsy_trackback_comment&quot;&gt;&lt;span class=&quot;topsy_twitter_username&quot;&gt;&lt;span class=&quot;topsy_trackback_content&quot;&gt;RT @sehlhorst Post on Freemium Business Model http://tinyurl.com/cm7vkw  - good read&lt;/span&gt;&lt;/span&gt;</description>
		<content:encoded><![CDATA[<p><span class="topsy_trackback_comment"><span class="topsy_twitter_username"><span class="topsy_trackback_content">RT @sehlhorst Post on Freemium Business Model <a href="http://tinyurl.com/cm7vkw" rel="nofollow">http://tinyurl.com/cm7vkw</a>  &#8211; good read</span></span></span></p>
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		<title>By: Scott Sehlhorst</title>
		<link>http://tynerblain.com/blog/2009/02/24/freemium-model/comment-page-1/#comment-479909</link>
		<dc:creator>Scott Sehlhorst</dc:creator>
		<pubDate>Wed, 25 Feb 2009 17:46:47 +0000</pubDate>
		<guid isPermaLink="false">http://tynerblain.com/blog/?p=840#comment-479909</guid>
		<description>@Erik,

Thanks very much for the comment!  I don&#039;t know if this is an average percentage (I just recently started researching it).  And to be clear - we don&#039;t really know if this is the percentage for Basecamp.  A 1% conversion rate would be consistent with the other publicly available data I&#039;ve seen - so this is entirely fact-influenced-speculation.  I&#039;m also early in the research process - Basecamp, being well known, and having just reached its 5 year anniversary, seemed like a good place to look first.  

If anyone else has anecdotal data, or suggestions on products to look at, please add theme here in the discussion section!

On persuasion techniques - definitely another article :)  I think this one was around 1500 words already, and I only wrote half of what I was thinking about.</description>
		<content:encoded><![CDATA[<p>@Erik,</p>
<p>Thanks very much for the comment!  I don&#8217;t know if this is an average percentage (I just recently started researching it).  And to be clear &#8211; we don&#8217;t really know if this is the percentage for Basecamp.  A 1% conversion rate would be consistent with the other publicly available data I&#8217;ve seen &#8211; so this is entirely fact-influenced-speculation.  I&#8217;m also early in the research process &#8211; Basecamp, being well known, and having just reached its 5 year anniversary, seemed like a good place to look first.  </p>
<p>If anyone else has anecdotal data, or suggestions on products to look at, please add theme here in the discussion section!</p>
<p>On persuasion techniques &#8211; definitely another article :)  I think this one was around 1500 words already, and I only wrote half of what I was thinking about.</p>
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		<title>By: Jed Christiansen</title>
		<link>http://tynerblain.com/blog/2009/02/24/freemium-model/comment-page-1/#comment-479907</link>
		<dc:creator>Jed Christiansen</dc:creator>
		<pubDate>Wed, 25 Feb 2009 17:37:33 +0000</pubDate>
		<guid isPermaLink="false">http://tynerblain.com/blog/?p=840#comment-479907</guid>
		<description>Hi, Scott.  Thanks for the link to my post, and I&#039;m happy to see that our estimates are in line with each other.  I updated my numbers a couple months ago and now think they made ~$4million in 2007 and ~$8million in 2008... and they only just got to 12 employees!

Jed</description>
		<content:encoded><![CDATA[<p>Hi, Scott.  Thanks for the link to my post, and I&#8217;m happy to see that our estimates are in line with each other.  I updated my numbers a couple months ago and now think they made ~$4million in 2007 and ~$8million in 2008&#8230; and they only just got to 12 employees!</p>
<p>Jed</p>
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