converting free users to paid users - fowa miami 2009
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On Converting FreeUsers to Paid Users
Kevin Hale
Future of Web Apps · Miami · Feb 23, 2009
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particletree.com
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treehousemagazine.com
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wufoo.com
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150,000+1.3 million+
2 million15 million
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Individuals, Developers, Designers, Non-Profits,
Teachers, Students, Universities, Research, Real Estate, Marketing,
Healthcare, Banks, SMBs
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Why are you here?
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Freeloaders
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Overcoming the Power of Zero
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InterestNo Alternative
UrgencyConveniencePeer Pressure
NoveltyStatus
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What about software?
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When copies are free, you need to sell things which
cannot be copied.
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What can’t be copied?
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Trust
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ImmediacyPersonalizationInterpretationAuthenticityAccessibilityEmbodiment
PatronageFindability
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Maximizers vs Satisficers
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Best PriceBest Product
Best Overall Solution
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Excercise 1
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ImmediacyPersonalizationInterpretationAuthenticityAccessibilityEmbodiment
PatronageFindability
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You make what you measure.
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Point
Point
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Start
End
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Count
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Log = Action + Timestamp
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ActionTimestamp
ReferrerIP Address
Cookie / SessionServer DataClient Data
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ViewsClicks
SubmitsKeystrokes
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Positive / NegativeLikert Scale
RatingsMultiple ChoiceOpen Feedback
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The Ultimate Question
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Tools
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google.com/analytics/
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omniture.com
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haveamint.com
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crazyegg.com
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clicktale.com
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wufoo.com
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surveymonkey.com
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formassembly.com
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dabbledb.com
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google.com/talk/service/badge/New
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Excercise 2
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Your Economic Engine
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Benchmarks
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Web App Autopsy
SXSW 2007
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PHP
6 months to launch
Launched : July 2006
3 Employees
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Ruby on Rails
3 months to launch
Launched : July 2005
6 Employees
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Java
5 months to launch
Launched : February 2004
~30 Employees
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.NET
3 years to launch
Launched : 1996
50 Employees
regonline
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Conversion per 100 Visits
Free Paid
7.00% 1.00%
11.00% 1.00%
8.00% N/A
1.52% 1.14%regonline
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Shareware0.5%
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Dropsend1% - 2%
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Casual Download Games2%
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Other Freemium ServicesRange from 1.5% to 5%
Average Overall less than 3%
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Ning3%
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Flickr5-10%
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AdultFriendFinder10% - 22%
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Habbo : 10% of playersClub Penguin : 25% of uniquesRunescape : 16.6% of uniquesPuzzle Pirates : 22% of players
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Top 10
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TurboTax Online70%
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Things to Keep in Mind
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Seasonal Effects
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Best Worst
Mar Dec
Jan Dec
Jan/Feb Dec
Sept Decregonline
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Early Adopter Frugal Factor
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7,000 invitations sent to potential Beta Testers.
Only 3,500 created an account.
Only 50 of them became customers (and we o!ered them half o!).
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Moving the Needle
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The Funnel
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Reduce Friction
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Number of Steps
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Label Placement
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Multiple Columns
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Excercise 3
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Increase Awareness
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Excercise 4
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On Promotion Codes
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Successful Changes
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Powered By Logo339% increase in click through
Video Spokesperson11% increase in registrations
Why Register Online? 6% increase in registrations
regonline
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Customer Lifetime Value
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Customer Referral Value
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The Original
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The Winner
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Excercise 5
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Off the Funnel
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Best PriceBest Product
Best Overall Solution
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Relationshipsas a Metaphor
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Intimacy Passion
Commitment
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NonloveLiking
Infatuated loveEmpty love
Romantic loveCompanionate love
Fatuous loveConsumate Love
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Intimacy Passion
Commitment
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Existing Users :: Marriage
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Dr. John Gottman
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Everyone fights.
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Cost / BillingUsers’ UsersPerformanceRoadmapOthers
MoneyKidsSex
TimeOthers
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How it’s done.
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When Things Go Wrong
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Enlightened Hospitality
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Importance of Fun
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Keeping the Romance Alive
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Bibliography
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Questions?
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Thanks!