Startups For the Rest of Us

Episode 754 | Broken Freemium, SaaS Plateaus, and More Listener Questions (A Rob Solo Adventure)

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Feb 4, 2025
In a solo adventure, Rob dives into the tricky world of freemium strategies and when it might be best to avoid them. He tackles the transformative impact of AI on the SaaS landscape and the risks posed when larger players enter the market. There’s also a thoughtful discussion on how to handle growth plateaus and monetize effectively. Additionally, explore the complexities of spinning off products and the strategic considerations behind it. Tune in for practical insights to boost your software business!
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ADVICE

Freemium vs. Free Trial

  • Freemium models often have low paid conversions, which is normal.
  • If unsure, avoid freemium; use a free trial instead to validate your product.
ADVICE

Handling Non-Converting Free Users

  • If free users aren't converting, analyze your free plan's value proposition.
  • Consider removing the free plan entirely or adjusting its limitations to encourage upgrades.
ADVICE

AI's Impact on SaaS

  • Integrate AI into SaaS products for content creation and internal operations.
  • Leverage AI as an accelerant for developer productivity, but it won't differentiate your product.
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