Attention freemium marketers: popular utility application Evernote gave a very detailed overview of their freemium business… and the data is both fascinating and within the typical band of freemium products. The major takeaway:
1.8% of users (6% of active users) have converted to premium users.
And Evernote has driven 50K premium subs in 28 months.
I appreciate Evernote’s willingness to provide visibility into their model as it helps other freemium businesses learn and optimize accordingly; and as we know, freemium has become a productive, consumer-friendly way to monetize apps, services, social content, etc.
I encourage you to read the full article on Venturebeat… but high-level statistics are below. If you are a freemium business and are interested in analyzing your performance, KISSmetrics is a great solution (Polaris portfolio company).
- 2.7m users with 7,000 added daily
- Premium accounts are $5.00 / month
- Has product on iPhone, Android, Mac, PC, and web
- 60% of audience is US
- 50,000 paying subscribers which is 1.8% of users and 6% of actives
- “The key to hanging on to older users is introducing new features.”
- Cost per active user is $0.09 (originally was $0.50)
- Revenue per active user is $0.70 per month