On Converting Free

Users to Paid Users

Kevin Hale

Future of Web Apps · Miami · Feb 23, 2009

particletree.com
treehousemagazine.com
wufoo.com
 150,000+
1.3 million+
2 million
15 million
Individuals, Developers,
Designers, Non-Profits,
Teachers, Students,
Universities, Research,
Real Estate, Marketing,
Healthcare, Banks, SMBs
Why are you here?
Freeloaders
Overcoming the
Power of Zero
 Interest
No Alternative
Urgency
Convenience
Peer Pressure
Novelty
Status
What about software?
 When copies are free,
you need to sell things which
cannot be copied.
What can’t be copied?
Trust
 Immediacy
Personalization
Interpretation
Authenticity
Accessibility
Embodiment
Patronage
Findability
Maximizers vs Satisficers
 Best Price
Best Product
Best Overall Solution
Excercise 1
 Immediacy
Personalization
Interpretation
Authenticity
Accessibility
Embodiment
Patronage
Findability
 You make
what you measure.
 Point

Point
 End

Start
Count
Log = Action + Timestamp
 Action
Timestamp
Referrer
IP Address
Cookie / Session
Server Data
Client Data
 Views
Clicks
Submits
Keystrokes
Positive / Negative
Likert Scale
Ratings
Multiple Choice
Open Feedback
The Ultimate Question
Tools
google.com/analytics/
web.analytics.yahoo.com
omniture.com
haveamint.com
crazyegg.com
clicktale.com
wufoo.com
surveymonkey.com
formassembly.com
dabbledb.com
 google.com/talk/
service/badge/New
Excercise 2
Your Economic Engine
Benchmarks
Web App
Autopsy
SXSW 2007
 PHP

6 months to launch

Launched : July 2006

3 Employees
 Ruby on Rails

3 months to launch

Launched : July 2005

6 Employees
 Java

5 months to launch

Launched : February 2004

~30 Employees
regonline
.NET

3 years to launch

Launched : 1996

50 Employees
 Conversion per 100 Visits
Free Paid

7.00% 1.00%

11.00% 1.00%

8.00% N/A

regonline 1.52% 1.14%

Shareware
0.5%
Dropsend
1% - 2%
Casual Download Games
2%
 Other Freemium Services
Range from 1.5% to 5%
Average Overall less than 3%
Ning
3%
Flickr
5-10%
AdultFriendFinder
10% - 22%
 Habbo : 10% of players
Club Penguin : 25% of uniques
Runescape : 16.6% of uniques
Puzzle Pirates : 22% of players
Top 10
TurboTax Online
70%
Things to Keep in Mind
Seasonal Effects
 Best Worst

Mar Dec

Jan Dec

Jan/Feb Dec

regonline Sept Dec

Early Adopter Frugal Factor
 7,000 invitations sent
to potential Beta Testers.

Only 3,500 created an account.

Only 50 of them became customers

(and we offered them half off).
Moving the Needle
The Funnel
Reduce Friction
Number of Steps
Label Placement
Multiple Columns
Excercise 3
Increase Awareness
Excercise 4
On Promotion Codes
Successful Changes
 regonline
Powered By Logo
339% increase in click through

Video Spokesperson
11% increase in registrations

Why Register Online?

6% increase in registrations
Customer Lifetime Value
Customer Referral Value
The Original
The Winner
Excercise 5
Off the Funnel
 Best Price
Best Product
Best Overall Solution
Relationships
as a Metaphor
Intimacy Passion

Commitment
 Nonlove
Liking
Infatuated love
Empty love
Romantic love
Companionate love
Fatuous love
Consumate Love
Intimacy Passion

Commitment
Existing Users :: Marriage
Dr. John Gottman
Everyone fights.
Money Cost / Billing
Kids Users’ Users
Sex Performance
Time Roadmap
Others Others
How it’s done.
When Things Go Wrong
Enlightened Hospitality
Importance of Fun
Keeping the Romance Alive
Bibliography
Questions?
Thanks!