Recently we introduced lemlist freemium in addition to the free trial that we’ve always had.
Some skeptics said 👇
“People won’t switch to paid plans after they get free access to the key features!”
This hasn’t been the case because lemlist is a freemium-fit product.
In this article, I’m gonna explain why and the strategy behind it, and give you 2 signs you should look for when deciding if you want to go freemium.
What's lemlist freemium and why we launched it?
Our freemium plan gives you 125 free weekly credits, which translates to scraping 25 emails from LinkedIn for free.
These credits accumulate and can roll over from week to week, up to 500, equal to 100 free emails each month.
You don’t need 3rd party tools that always have limits for email finders.
You don’t waste time on inaccurate emails.
Pretty neat.
Now why did we do it?
Freemium is one of the fastest ways to show your ICP the value you bring.
The problem with a free trial is that you don’t know how long it will actually take your customer to start using your product and seeing results.
This is especially true if you go upmarket and target bigger teams.
You can send as many “You have X days left until the end of your free trial” reminders, but Sarah (your ICP) on the other side has 40 open tabs on her laptop and 30 tools like yours sending her reminders.
Freemium allows customers to go at their own pace.
The second reason is that companies need data. lemlist Chrome extension helps them enrich their databases in a few clicks, and if they want more, they can always either buy more credit or switch to a paid plan.
But not every SaaS needs a freemium. Here are the 2 signs you need to look for 👇
Sign #1 Your market is huge and keeps growing
With freemium, even the people who can’t afford your product can try it and recommend it to others.
On average, only 3% of your freemium users will convert into paying customers. So if you’re in a small market, it may kill your business since you won’t be able to generate enough revenue.
But if the market is big enough, freemium is a great way to spread the word of mouth.
Sign #2 Your product is suitable for self-onboarding
If your product is too complex and needs a dedicated person to onboard your customers, freemium isn’t for you.
The idea of freemium is that the customer can discover the value on their own.
It should also be easy to identify the metrics to track to understand if your clients have activated.
Some examples 👇
If it’s a customer support bot, have your users connected it with their database so it starts answering their customers’ queries?
If it’s a workspace messenger, how many messages your users are sending each other?
If it’s an AI meeting note taker, have your users connected it to their Google Meet?
For more complex software, it’s not so simple.
In our case, we removed everything we considered useless for the onboarding, rebuilt the email campaigns from scratch, designed the activation for Product-Led Sales with qualification questions to help buyers in their journey with our Sales team, etc.
That’s it for today!
Every week I’ll publish new articles on how to build and grow a B2B business that generates millions of dollars.
Peace, love, and profit 💰
G. ✌️
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