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RE: Why freemium is bad for business
Recurly 15th Jan 2010
I think that Lincoln's white paper and your article highlight one crucial truth about "Freemium"- its not a silver bullet to address revenue concerns. If the proper investigation, analysis and planning is not done before leveraging Freemium, then there's a good chance a business is going to fail.

If you embrace freemium but don't instrument your service to track and account "free" accounts- you lose most of the marketing value those accounts provide. If you don't provide a sensible and seamless upgrade path from a free to a paid tier, you leave money on the table (and risk going bankrupt).

If you do end up deciding to go with a freemium-based strategy, building strong metrics to track the success each portion of your plan is crucial. I recommend checking out Eric Ries blog (http://www.startuplessonslearned.com/) for more tips on this.
ie8 fix

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