Let me take a minute to tout our own Ryan Spoon. Ryan’s an incredible insightful guy who’s doing a great job for Polaris, including co-quarterbacking all of our Dogpatch SF efforts. And he’s an ex-entrepreneur as former VP Marketing @ widgetbox, key player @ eBay (internet marketing, social media marketing), and co-founder of berecruited.com, which was acquired in 2007. The below post from ryanspoon.com talks about the Freemiun Model Summit held last month.
Submitted by Ryan Spoon on March 28, 2010 – 12:37 pm
More data out of the Freemium Summit and following the great insights from Evernote. Here are tidbits from Pandora and Dropbox about their freemium business models and results. More case studies and data are available on GigaOM.
Freemium product: Pandora One
Premium features: higher quality streams, desktop app, no usage limits
Results: 300,000 subscribers – 1.6-1.7% of monthly uniques
Premium features: Bandwidth
Results: Dropbox has one of the best referral programs on the web (see my review here). The program increased signups by 60% and now drives 30% of all signups.
Organization: 30% of the engineering is devoted to user acquisition
Evernote (see full write up here)
Premium features: premium account, bandwidth
Results: 1.8% of users (6% of active users) have converted to premium users. And Evernote has driven 50K premium subs in 28 months.