What’s the best way to monetize?

Tomasz Tunguz (Partner at Redpoint Ventures)
The Common Characteristics of Successful Freemium Companies

Startups should consider freemium when four conditions are met: The number of potential free users numbers in the tens of millions. Freemium conversion funnels tend to be very lossy. On average, 1-4% of users convert to paid. 2. Free distribution is a competitive advantage in the market. 3. The product used by a free user has a simple and straightforward value proposition. Because customers are educating themselves, freemium products have a very … (read more)