The Blog Of Matt Brezina Rotating Header Image

Freemium ain’t new. It is just a new word.

I recently spoke at the Freemium Summit in San Francisco.  The speaker line-up was full of great companies executing on freemium models in the consumer and enterprise space:  companies like Dropbox, Automattic,  and MailChimp.  I was asked to speak as part of the Freemium for Enterprise portion of the program.

Below are my slides from the presentation.  I split the presentation into three sections.

  1. First, an exploration of the freemium business model currently being applied at 3 public companies: LogMeIn, eFax (j2 communications) and Skype.  In studying the public SEC documents for these companies we’ve found a consistant 10 to 1 ratio between free users and paid users. A goal we’re trying to achieve at Xobni.
  2. Second, I show six business/market conditions that can suggest implementing a freemium model.   Many of these conditions are derived from discussions I’ve had with Sean Ellis, who blogs here and has had great freemium experience working with companies like Logmein, Xobni and Dropbox.
  3. Finally, any time I give a talk at a conference I try to give concrete, actionable examples of lessons learned from my own experience in building Xobni’s business.  In this presentation I’ve dedicated the latter half of the content to specific successes we’ve had at Xobni. And this was all made under the warning derived from Paul Buchheit’s brilliant quote: advice=limited experience + overgeneralizations.  So be forewarned :)

And one clarification on a slide that will make no sense unless explained.

golden gate park freemium business

Slide 4  This is a shot of golden gate park

  • My point is that golden gate park is actually a 120 year old freemium model.  90% of visitors don’t pay anything to enjoy the park.  10% pay for the premium services like the tea garden, conservatory and golf course.
  • The foot traffic of free visitors leads to more sales and admissions for the premium services of the park.
  • I looked at golden gate’s financial documents it appears that they still aren’t profitable.  Premium services only provide 40% of the budget.  So, like most things in government, it isn’t profitable (or even break even), but it is at least an attempt at a freemium business.

So with that, here are the slides:


  • Pingback: Daily Links #165 | CloudKnow()

  • http://www.facebook.com/debow Daniel Debow

    Great deck, great post. We're going to be implementing a few ideas by end of week. Awesome, thanks!

  • http://jonathangrubb.com/ jonathan

    Without getting into a big political discussion, I'd argue that GG Park may in fact be profitable based on the tax revenue that it brings to the city by raising housing values and drawing tourists.

  • brezina

    Good point Jonathan. I bet if we could measure these contributions we could get a lot more parks built. I don't know if you live here, but I wish, wish, wish the park continued all the way to the financial district, connecting the bay and the ocean. It would be a more accessible oasis for more people in the city, and it would be a commuting route for bicyclists and walkers.

  • brezina

    Good point Jonathan. I bet if we could measure these contributions we could get a lot more parks built. I don't know if you live here, but I wish, wish, wish the park continued all the way to the financial district, connecting the bay and the ocean. It would be a more accessible oasis for more people in the city, and it would be a commuting route for bicyclists and walkers.

  • http://recordsresources.com public records

    Thanks Matt for sharing your process. Some great points to ponder in there.

  • Felicity

    Hi Matt. I was just wondering how long does it take for Xobni to convert free customers to paid customers on average?

  • uggs boots

    uggs boots How do you head? Said urgent guards around.Is something wrong? Said Li Bin thinking about. Bva@ijKa political commissar Zhao has been in camp early to lie in bed. Only Meng company No comment. SUN Sun platoon platoon leader got up and patted the dust said.

    purple uggs boots  Shang Jing suddenly raised his fist, this is the enemy of the signal, the players suddenly squat alert the surrounding environment. I saw the hands of Shang Jing porting automatic rifle slowly move forward. When she came to suspect the target in front of relief followed by a thumbs-up time, which means all clear.Well, captain of the summer, we do only so much, and I wish you a successful operation. Captain Wu peak behind Xuelang special flight brigade commander Xia Zhi said.

    men uggs boots Suddenly a player raised his gun Huben said tension.

    uggs boots on sale Also stunned with what ah? Move ah. Blues is a soldier is in a daze pushed him over, said Li Bin. http://www.hotbootsshop.com

  • http://www.webhostings.in/ Web Hosting Provider

    Thanks Matt for sharing this process here.

  • http://www.webhostings.in/ web hosting in india

    Hey, your article is awesome. In your post depth information is
    there and is interesting. Most of the people agree with your post I
    overcome with your article.

  • http://www.webhostings.in/ web hosting in india

    Above the video is excellent creativity.Every one looking for this kind of valuable tips.

  • uggs boots

    uggs boots Stand at attention. Meng commander said loudly.Squad leader  a voice interrupted Xu Biao is telling, Xu Biao looked back and saw the tears of the same Li Bin, just rub a bit busy, random tears with a wry smile. Lvv*GccYou did not go back and look at many

    monitor it? Said Shang Jing concern.

    mens uggs boots Oh, hey, something yet? Kai smiled and came to the table where Stuart Martin, Stuart Martin in the opposite seat.

    purple uggs boots A little while, then drove to the Shang Jing C, and B, the border zone, the car stopped, Shang Jing quickly unloaded the steering wheel down, and later be buried quickly in a more secluded place, and finally reach for 95-type assault rifles, simple weapons, the situation took a look after the vast grasslands where Bianxiang searching.Oh  Meng gas company commander sitting in a chair.

    uggs boots for sale Several other scouts? Continued the captain inquired summer, lest neglect any details. http://www.hotbootsshop.comNot very comprehensive, I would like to captain after the things you and Shangguan, I do some of this road take the liberty, but you can not always be so decadent ah, I hope you cheer up, back before you. Yan Szeto word sentence said.”

  • http://www.webhostings.in/ web hosting

    Above the video is excellent creativity.Every one looking for this kind of valuable tips.

  • discount ugg boots

    discount ugg boots  turn pass to the public, said: “brother built a number of great merit, only a Xianyu, this counter is Du insult. I think a pair of orange spines, Luan non-habitat HrBUrY

    ugg australia discount code Do not take three classes of people, I can, and company commander, political commissar, then I went to the Ha. Xu Biao Jing finished a military salute, turned and walked to the confinement.

    uggs discount But after not too late to care. “So in addition to grant Dingzhou Xuande Zhongshan Xi Xian Wei, Fu-an, Krzysztof his new post.

    discount ugg shoes After the surprise attack, Zeizhong defeated, Benru Wancheng. Zhu Jun divide our forces surrounded around the set. City without food, Han Zhong people out of the city to surrender. Jun is not http://www.hotdiscountbootsoutlet.com

  • Pingback: Freemium in XobniFreemium.org | Freemium.org()

  • Amelia Kardos

    I like your points of presentation and the way you give realistic and relocatable examples makes your presentation even better. The fermium point is very valid and you are right the fate isn’t profitable yet I believe it can bring profit. I am using essay service to write my blogs have a look at it. Write more about fermium projects and its impact.