The Importance of Free in Accelerating Business Growth

Name: The Importance of Free in Accelerating Business Growth
Uploaded: 2024-04-03T13:02:34+00:00
Duration: 47 s
Channel: Jason M. Lemkin
Description: Jason M. Lemkin argues that free tiers are essential for product-led growth, but pushing users to paid too fast kills engagement and retention. He…

3 Apr 2024 · 1 min

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Jason M. Lemkin argues that free tiers are essential for product-led growth, but pushing users to paid too fast kills engagement and retention. He suggests appointing a VP of Free to own the strategy, with Monthly Active Users as the key metric, and warns that managing free across departments requires careful coordination.

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that materializes. And again, not PLG is not for everybody, but if you're going to do it, free is a component. If you're trying to accelerate people or mine too aggressively for, convert them too aggressively from free until paid, and you don't have that engagement, you're going to pay for it on the other side and quality and retention and those things. So I do think net it does tend to work out, but yeah, it's hard to avoid those pressures. This is something I wrote up years ago. Who's your VP of free then? Who owns free? It's a question. What's their KPI? Yeah. Their KPI is Mau. And in our current model, and I think— Mau's a good one. And in our current model, we, we, we have kind of a squad model. And this is one of the whole things about PLG. You'll forgive the diatribe. What makes it so hard is it's highly cross-organizational, right?