Startups For the Rest of Us TinySeed Tales 8 | Success and the Ongoing Struggle
Dec 12, 2019
Craig Hewitt, founder of Castos, shares insights from his startup journey and the trials of navigating growth challenges. He discusses the recent trial signup modifications aimed at enhancing customer conversions. The conversation touches on the benefits of a freemium model, removing payment barriers, and nurturing potential clients. Hewitt also highlights the importance of team dynamics and collaboration in achieving success, as well as the strategic shifts necessary in the evolving podcasting landscape.
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Castos's No-Credit-Card Trial Experiment
- Craig Hewitt removed the credit card requirement from Castos's 14-day trial.
- This increased trial sign-ups but decreased the trial-to-paid conversion rate.
Zombie Customers
- Requiring credit cards upfront can lead to "zombie customers" who forget to cancel.
- Freemium models eliminate this, ensuring only engaged users become paying customers.
Usage-Based Freemium Model
- Consider a usage-based freemium model instead of a time-limited trial.
- This better aligns with user journeys and allows for longer nurturing periods.