Why would you pay for something, if it is available for free?

Customers don’t really pay for a product, what they pay for is a benefit they get buy owning or using the product.

We have been working on a new #SaaS product which will be sold in a #freemium model. Obviously, the features which are offered for free, were developed earlier in the cycle, so that they can be released for use by all.

Apart from delivering the promised functionality, the free features also work as marketing and sales agent for the premium features. As a marketing agent the free features provide compelling reasons to hold on to the free service. Also, they gather enough data to identify potential opportunities for sale.

As rightly commented by Satish Vengurlekar on my last post, outstanding sales can effectively sale mediocre product, the free features must outperform in selling the paid features.

Or else who will sell the product?

Would you like to share your experience of freemium products?