REWORK Bringing Back Free
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Mar 5, 2025 The co-founders of 37signals dive deep into bringing back a free version of Basecamp. They discuss how offering free access can boost sales and engage users, even if some remain non-paying. The conversation shifts to the challenges of balancing analytics with intuition in business decisions. They reflect on the long-term effects of freemium models and the importance of customer support beyond mere costs. Ultimately, they explore innovative strategies for integrating free usage tiers to attract new customers.
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Basecamp's Free Plan History
- Basecamp initially offered a free one-project plan, which proved successful.
- They later removed it and saw an increase in paid accounts but decreased exposure.
Free Plan Benefits
- Offering a free plan increases product exposure, which is crucial for organic growth.
- More exposure leads to more trials, invitations, and ultimately, more paid conversions.
Freemium Model Impact
- Offering a 'freemium' model was revolutionary in 2004 when Basecamp launched.
- There’s a psychological difference between free trials and free plans, impacting user investment.