May 31, 2010

Are free trials the answer?

I was having a great conversation of Matt of SayYeah during Thursday nights SproutUp. Naturally our discussion went to MeetKipu, an upcoming product of SayYeah which helps you track time.

One of the discussions we had revolved around the business model, specifically, will there be a freemium component, a simple free trial or none at all in Kipu? While debating the merits of free trials and freemium models (where you get some features for free but have to pay for the rest) Matt made an interesting comment: most graphic designers out there learned on a pirated version of Photoshop, but once they decide to become designers professionally they will buy a licensed version.

I’ve never heard of free trials being promoted in this way but it is certainly true:

  • Most graphic designers I know have learned on a pirated copy of Photoshop.
  • Most students I know do use a pirated version of Office (though many are now converting to the cheaper version)
  • Most techies I know who built towers back in the day did use pirated version of Windows
  • etc. etc.

Yet in nearly each one of these cases once there was a solid, financial case for buying a licensed copy the individuals did. Once the Business Case was made, they were comfortable with the product and had the cash theypaid. Freemium Models restrict features so we don’t learn the full power, potential or have the ability to learn. Free trials are rarely long enough to unlock an app or have it there when I have the money, cash flow and customer base to justify paying unless the app is perfect.

I don’t believe untimed free trials are an answer at all but it made me wonder if timed trials or freemium were the answer at all.

  • http://twitter.com/thinkoutloud77 Daniel

    Free trials are definitely the answer. I’ve been using a 30day trial version of MarsEdit and when it expires, I’ll probably buy a license. I’m also guilty of a few mentioned *cough questionable cough* activities. This also applies to apps in the app store. I used a pirated copy of a game before I decided it was more than worth it to buy the game. If developers create a “lite” version (app store) or trail version (desktop) of their software, it’ll more than pay off for them.

    (Unrelated note: the image you have, with the question mark and the person, may I reuse it on my own site?)
    -Daniel

    • http://www.twitter.com/alexblom AlexBlom

      Hi Daniel.
      Thanks for dropping by and leaving a note. I understand that free trials work and I’m not disputing that. I guess the issue is that sometimes free trials are not long enough, are too long or do not occur at the right time. I’m assuming you are referring to Shareware?

      To me that model is still best. I’m just wondering if something a little more time sensitive can be conceptualized.

      • http://www.twitter.com/alexblom AlexBlom

        Oh, and the image was royalty free / creative commons from Flickr. I believe that means you can use it. I just searched for ‘question mark’

        • http://twitter.com/thinkoutloud77 Daniel

          Thanks!

          Well, I think developers are simply trying to get their efforts worth. When we buy a product, we want our money’s worth. We worked for that money, we want every drop it can get us. The developers worked long and hard on their product; they want to get fair money for fair work. That provides a dilema on trials. Like you said, time sensitive provides poor results for the consumer. We don’t get to fully understand an application if we use it for only 15 days or if it has “limited features.” Personally, I believe subtle ads are a very pliable solution. If developers put them front and center, that’s more annoying (and provides less costumer response) than a timed for freemium trial. But if you put ads off to the side or only in certain areas and possibly combine that with the option of a fully paid program, now you’re getting somewhere.

  • http://twitter.com/thinkoutloud77 Daniel

    Free trials are definitely the answer. I've been using a 30day trial version of MarsEdit and when it expires, I'll probably buy a license. I'm also guilty of a few mentioned *cough questionable cough* activities. This also applies to apps in the app store. I used a pirated copy of a game before I decided it was more than worth it to buy the game. If developers create a “lite” version (app store) or trail version (desktop) of their software, it'll more than pay off for them.

    (Unrelated note: the image you have, with the question mark and the person, may I reuse it on my own site?)
    -Daniel

  • http://www.twitter.com/alexblom AlexBlom

    Hi Daniel.
    Thanks for dropping by and leaving a note. I understand that free trials work and I'm not disputing that. I guess the issue is that sometimes free trials are not long enough, are too long or do not occur at the right time. I'm assuming you are referring to Shareware?

    To me that model is still best. I'm just wondering if something a little more time sensitive can be conceptualized.

  • http://www.twitter.com/alexblom AlexBlom

    Oh, and the image was royalty free / creative commons from Flickr. I believe that means you can use it. I just searched for 'question mark'

  • http://twitter.com/thinkoutloud77 Daniel

    Thanks!

    Well, I think developers are simply trying to get their efforts worth. When we buy a product, we want our money's worth. We worked for that money, we want every drop it can get us. The developers worked long and hard on their product; they want to get fair money for fair work. That provides a dilema on trials. Like you said, time sensitive provides poor results for the consumer. We don't get to fully understand an application if we use it for only 15 days or if it has “limited features.” Personally, I believe subtle ads are a very pliable solution. If developers put them front and center, that's more annoying (and provides less costumer response) than a timed for freemium trial. But if you put ads off to the side or only in certain areas and possibly combine that with the option of a fully paid program, now you're getting somewhere.

  • http://yousayyeah.com Lee Dale

    I have to say I’m not generally a fan of the off or on model of free trials. Freemium and scaling models really allow you to get a feel for the product and grow your access as you grow your business/use the product more.

    From the consumer point of view, it certainly is great to have a 30 day trial from Adobe each time they release their Creative Suite, but I’d really be interested to see if I they offered scaled pricing based on feature use. I suspect I use about $100 worth of Photoshop and, as a result of this, will not be upgrading to CS5. Then again, can only power users support an aging, bloated product when all the basic features are essentially unchanged from release to release?

    From a development point of view, I’d much rather have *all* of my users using the latest version of the product than having to deal with support issues and a lack of engagement with product updates that comes with users who abandon new product releases in favour of 3 or 4 year old product (thinking again of Adobe’s Creative Suite).

    A freemium/scaling model keeps people actively engaged with the product. As a user, you may run into walls with continued usage, but the more this happens, the more likely you are to recognize the benefit of upgrading. If you just turn your product off after 30 days, it’s more likely that it will get forgotten, since your users are no longer actively using it. Unless, of course, those 30 days were truly great at which point the product will be upgraded before access is lost.

    I’d also imagine there’s an amusing gaming aspect that goes with freemium/scaling models, where users find any way they can to avoid those upgrade thresholds. I’d like to see a product play with this a little more directly. We’ll work on that with Kipu.

    • http://www.twitter.com/alexblom AlexBlom

      Thanks for dropping by Lee.
      I’m a gamer when it comes to freemium and that is my problem with it. The conversion rate is low. There is a cost associated with providing and supporting the free service that may be best put elsewhere.
      As for Photoshop features, I guess the reality is it is a full suite. It’s not viable to always scale the product down considering the cost of development.
      I don’t disagree that freemium keeps people more engaged but do we really want that? If I have unprofitable engaged users who don’t refer me new sales I have little interest in them. 10 paying customers is far better than 100 free ones any day in my book.

  • http://yousayyeah.com Lee Dale

    I have to say I'm not generally a fan of the off or on model of free trials. Freemium and scaling models really allow you to get a feel for the product and grow your access as you grow your business/use the product more.

    From the consumer point of view, it certainly is great to have a 30 day trial from Adobe each time they release their Creative Suite, but I'd really be interested to see if I they offered scaled pricing based on feature use. I suspect I use about $100 worth of Photoshop and, as a result of this, will not be upgrading to CS5. Then again, can only power users support an aging, bloated product when all the basic features are essentially unchanged from release to release?

    From a development point of view, I'd much rather have *all* of my users using the latest version of the product than having to deal with support issues and a lack of engagement with product updates that comes with users who abandon new product releases in favour of 3 or 4 year old product (thinking again of Adobe's Creative Suite).

    A freemium/scaling model keeps people actively engaged with the product. As a user, you may run into walls with continued usage, but the more this happens, the more likely you are to recognize the benefit of upgrading. If you just turn your product off after 30 days, it's more likely that it will get forgotten, since your users are no longer actively using it. Unless, of course, those 30 days were truly great at which point the product will be upgraded before access is lost.

    I'd also imagine there's an amusing gaming aspect that goes with freemium/scaling models, where users find any way they can to avoid those upgrade thresholds. I'd like to see a product play with this a little more directly. We'll work on that with Kipu.

  • http://www.twitter.com/alexblom AlexBlom

    Thanks for dropping by Lee.
    I'm a gamer when it comes to freemium and that is my problem with it. The conversion rate is low. There is a cost associated with providing and supporting the free service that may be best put elsewhere.
    As for Photoshop features, I guess the reality is it is a full suite. It's not viable to always scale the product down considering the cost of development.
    I don't disagree that freemium keeps people more engaged but do we really want that? If I have unprofitable engaged users who don't refer me new sales I have little interest in them. 10 paying customers is far better than 100 free ones any day in my book.

  • Pingback: Tarzan vibrator

  • Pingback: hardwoodflooringcost.org

  • Pingback: web game

  • Pingback: how to make your penis bigger

  • Pingback: videos porno

  • Pingback: vertaa lennot

  • Pingback: φωτοβολταϊκά σε ταράτσα

  • Pingback: drainage pipe

  • Pingback: nococomial infections

  • Pingback: เกมแต่งหน้าเจ้าหญิง

  • Pingback: comparatif assurance auto

  • Pingback: google redirect virus

  • Pingback: Review blog

  • Pingback: cash advance

  • Pingback: kids sleeping bags

  • Pingback: bed wedge pillow

  • Pingback: http://www.autoapproveclub.com

  • Pingback: searscard

  • Pingback: Running Car On Water

  • Pingback: sponsored reviews

  • Pingback: kulutusluottovertailu

  • Pingback: how to unlock iphone 4s

  • Pingback: low vitamin d

  • Pingback: how to live green

  • Pingback: blackhead removal

  • Pingback: how to get your husband to do what you want

  • Pingback: penny Stock Egghead REviews

  • Pingback: Shakeology

  • Pingback: medical education online

  • Pingback: Click here

  • Pingback: aspirateur samsung

  • Pingback: costume homme pas cher

  • Pingback: novoline kaufen

  • Pingback: bed bugs picture

  • Pingback: novoline tricks

  • Pingback: profumi

  • Pingback: water damage michigan, water damage repairs michigan, flood repair, leaking roof, sewer backup, water damage restoration michigan, michigan repairs, flooding,

  • Pingback: You find autoapprove links here

  • Pingback: stretch mark removal

  • Pingback: using FTP software

  • Pingback: cheap tires

  • Pingback: free movies online

  • Pingback: GIMP Editor