Ask HN: Review Preceden's paid conversion funnel
mattmazur.com
mattmazur.com
Two specific questions:
1) What's a "good" conversion rate for a freemium web app? And since the answer is almost definitely "it depends", what factors go into it?
2) What do you think of the site's current free/premium breakdown (you can add less than 20 events for free, more than that is $29 for unlimited events). As mentioned in the post, both the max event limit and the price are hard to get right and I'm not sure how to arrive at the optimal numbers.
Also, and unrelated, when I submitted this through the "submit" section on HN it removed the "Ask HN" from the beginning of it. I went back in and added it, though I'm not sure if it was intentionally removed because it linked to an outside URL. I didn't see it in the FAQ, and am curious.
1) The industry average (at least from sources talking about it) is around 1-2% of all signups upgrading, so you're at par there. I think, however, that this is not very helpful. Continuing the 'par' theme, what would you say is a 'good' handicap in golf? There's no such number, really, except in relation to certain goals. Likewise, I think your conversion rate should just be one of the things that you tweak in order to maximize your profit, which is most important thing in the end. Be aware that it may be much better to have a 1% conversion rate at a higher price than a 5% conversion rate at a lower one. Or vice versa.
2) I'm not sure about whether this is good or not, I'm afraid. It's quite a unique service you're providing - there's not a lot to use as a benchmark. Something to take into account is that people generally upgrade when they hit a 'pain point' in the app. That's when I go over my dropbox free storage limit, for example. For Bingo Card Creator it's when you want to print the cards you've created (I think). The pain point in your app is unclear. What is it people are using it for? Perhaps you don't want to limit the number of events, but rather the usage of the created timeline? Upgrade if you want to save it as an image, print it, embed it in your website, save it online etc. Remember that the more people put into something, the more willing they will be to pay to get past the pain point (it is a hassle for me to signup with anyone other than dropbox if I'm already using them, for example). Also think about the scenarios in which you are saving people a huge amount of time. For Bingo Card Creator, it's teachers spending hours messing about with Word trying to make different cards. The app saves you that time. Is there an equivalent for your users, or a particular subset of them?
Just some random thoughts there.
As a final thought, related to some of the above points, think about whether it is a good idea to stop people entering all the data they want to enter, which you're doing. Perhaps it might be better to let them enter as much as they want, but require an upgrade to stop it all just disappearing (or all but 10 events of it disappearing) as soon as they leave the site (or 24 hours later, or whatever). Then you've got people putting more into your app, and you're introducing a more natural pain point: pay up to keep all the work you've just done, or to print it, or to share it in its entirety.
If I ran a team of workers and wanted a gantt chart for our work, and put X minutes/hours into creating it (dozens of sub-projects) in your app, and then you asked me for $29 to keep it, I'd pay, no question.
I think you're right in that I need to do a better job at addressing the pain points. One of the interesting dilemmas about it is that people are using the app for many different uses, which is great, but it makes it hard to sell to a specific audience. You might be right in that I need a business section, similar to what I think RescueTime does.
I'm not sure about charging folks to keep their data from disappearing though. As a user, I think I'd get really frustrated with an app that did that. It's kind of like ransoming off the user's data, isn't it?
Bingo Card Creator has been a big inspiration for me. That's where the $29 price came from.
Again, appreciate it.
That's separable from the question of how to actually make the cut-off (and deleting data, as you suggest, may be too brutal)
But anyway, it's just thinking out loud rather than a definite suggestion.