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Sean O'Malley
San Francisco, Ca
Interests: Saturday morning soccer dad, weekend golf hacker, alternative music lover, international travel.
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Great stuff Leland. I've been working on a post that articulates exactly what you've commented on. The basic gist is that Lead Gen/CPA is where the action is. I'll pull together my thoughts and post something soon.
Ad Based Startups -- Bad Idea?
CPM rates have been falling. That's no surprise. What's been a surprise is the depth of the decline for remnant inventory. An August study from the Interactive Advertising Bureau and Bain Capital found on average, CPMs on remnant ads ranged from $0.60 to $1.10. In my own recent informal poll, ...
Ryan,
You can almost always move downstream from a premium model to a freemium model. Is it worth it? It depends. As I mentioned, the 'free' part of freemium should be thought of as a marketing cost. It brings in users that might not have otherwise tried your product. It's an opportunity to get them engaged while also getting more 'buzz' for your product.
However, the trick is what you provide the free users vs. the premium users. In other words, you don't want to give away what your 'Must Have' audience values. Bottom line, you need to know who your premium audience is and what they value so you don't mistakingly give it away when you move downstream.
Will Freemium save Web 2.0?
Over the next 6 months I expect to see many of the Web 2.0 companies add a freemium model to their product in search of profitability. Will this model be the solution for the group of companies that have been focused on customer acquisition while delaying monetization? The short answer is that...
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