325 karma · joined October 18, 2014
From Zoom to Calendly, from HubSpot to Monday.com, the free tier generates an enormous user base that leads not only to upgrades, but also to a fantastic feedback loop that makes the product stronger and stronger.
In the space where we operate - the democratization of design - the most successful example is by far Canva. It has over 99% of users that are on the free plan, but with 60m users, that 1% is golden, and generates $1b in ARR. Melanie Perkins recently shared some of those numbers and their journey here: https://medium.com/canva/a-note-to-the-canva-community-1d4b0...
So, in the end, it's all about making sure that small % of customers that ARE willing to pay, pay you enough to make it all work. It sounds obvious, but it takes a lot of time to figure it out (we certainly do not have all the answers yet, even after 7 years). But here's the key: among the large amount of free users lies the very audience you need to listen to in order to determine what people are willing to pay for. That discovery process ends up being the game changer.
So, it's a cool metric, but it doesn't tell the complete story.
Actual monthly ARPA at BEE is around $27 for our BEE Pro product (hosted email & page design suite) and over $600 for our BEE Plugin offering (embeddable email, landing page & popup builder).
Similarly with our embeddable visual builders: you can get started completely free of charge, then move up to a paid plan when you need more. And with this product there are actually many that "need more" from the get-go, so they get in touch with our sales team to make sure that the product is a good fit, do a proof-of-concept at no charge, and then go live.
Some more thoughts on being product-led here, if you are interested, here: https://www.linkedin.com/pulse/product-led-vs-product-focuse...
In fact, it's more likely that we double-down on free access going forward: the revenue comes (and will continue to come) from those that need more. When you need "more", you're typically willing & happy to pay for it. Pretty much as simple as that :-)
BTW: BEE is now a visual builder for more than emails. In fact, going with a couple of from a landing page to an email (and vice versa), is one of the really cool things you can do with it.