REWORK
Bringing Back Free
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.
21:28
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Quick takeaways
- Reintroducing a free Basecamp plan enhances user exposure and engagement, potentially leading to more conversions in the long run.
- The co-founders stress the importance of long-term evaluation of pricing strategies, focusing on user trends rather than short-term metrics.
Deep dives
Reviving the Free Plan
The decision to reintroduce a free version of Basecamp stems from the recognition that offering free access can significantly increase user exposure and ultimately drive growth. Historically, Basecamp had a free plan that allowed one project, which not only attracted users but also generated organic growth as people experienced the product without a financial commitment. The co-founders discussed the insights gained from a marketing perspective, particularly noting how a free offering helped their competitors, like MailChimp, effectively grow their user base. By allowing users to try Basecamp freely, they anticipate increased engagement, which could lead to eventual conversions to paid accounts.
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