- Increased adoption: Offering a free version of a product or service can increase the number of people who are willing to try it out. This can lead to increased adoption and a larger customer base.
- Increased engagement: Once a customer is using a free version of a product or service, they are more likely to become engaged and invested in it. This can lead to increased loyalty and advocacy.
- Upsell opportunities: Freemium models often include upsell opportunities, where customers are offered additional features or services for a fee. This can be an effective way to generate revenue from customers who are already engaged with the product or service.
- Low barrier to entry: A free pricing plan can be a low-risk way for customers to try out a product or service, which can be a more effective way to attract new customers than charging upfront fees.
- Cost-effective: Freemium models can be cost-effective, as they allow customers to try out the product or service before they commit to paying for it. This can reduce the risk of customers regretting their purchase.
However, there are also potential downsides to a freemium model, such as:
- Limited features: The free community version does lack a few of the bells and whistles that are more attractive to larger rep agencies. Our goal is to provide a starting point to get your agency more productive, and then provide a path to further your goals as you grow.
- Limited scalability: Freemium models can be less scalable than traditional pricing models, as they may not generate as much revenue per customer. Offering a more self-help options for MRSware keeps our costs low and allows us to offer the free plan, but if you need us we are here with paid training and support options.
- Can be difficult to monetize: Freemium models can be difficult to monetize, as customers who use the free version may not be as likely to upgrade to a paid version. However, we have the desire to make an offering to an underserved market of manufacturers reps, in particular, those smaller agencies that just don't have cost effective options. Having 20 years experience in the industry has provided us the know-how to deliver a solid starting point to any agency.
In conclusion, having a pricing plan that is zero dollars can be an effective strategy for increasing adoption and engagement, and providing low-barrier entry to the product or service. However, it's important to balance the pros and cons of this model, necessitating we keep support time investment with free members lower than the fanatical level of support we offer our Business and Plus plan subscribers.