| We do something similar to this at Userify / ssh key management (disclaimer: I'm the founder/CEO): We give away 20 servers for free -- no invoice, no credit card needed, nothing. Once you exceed 20 servers, we charge (it's about $70/month). You'd think that 20 servers is way too much to give away, but actually about 76% of our servers are on the paid plan and a huge percentage of our customers come from the invitation referrals when people change companies or consult for multiple companies. (Our pricing might be too low and our product might be a bit too technical and scare off a lot of people who might not even know what SSH is, but for now that acts as a filter and keeps our support costs low; it's working for us, although we'll probably lighten up a bit on the technical homepage in the near future.) Also, the SaaS product acts as a frictionless testing area for people who actually just want to deploy the on-premise version, which accounts for approximately 40% of our revenue. Our customers like the product and we have grown with many of them from free to paid. We're growing a startup for the long haul and don't have to demonstrate any particular growth rate to anyone. The advice in this article works. Build something that provides some useful utility to people, and give as much away as you can. Most people will not abuse it and will return the favor as they grow. |
So so glad to see you winning with this "strategy" — it's not a strategy IMO, it's the forward way of living and conducting business. I'll send you an email, would like to connect!
> We're growing a startup for the long haul and don't have to demonstrate any particular growth rate to anyone.
That's the ultimate level of power and freedom. I wish you well.
Ch Daniel