Finotes does not follow freemium model. And we have our reasons.
One of the decisions that we at Finotes took was that we are not doing a freemium model. Being a bootstrapped startup, Don Peter and me were not able to justify the infrastructure and operational cost associated with serving the free tier users.
While freemium is a valid business model, it’s just that we could not find a way to cross subsidise. We do have a finite term trial plan though.
Looking back, we did register decent growth. One may argue that if we had a freemium model we could have more conversions. I am not disputing that. What I understand about the market that Finotes is in is that customers are more value conscious than price conscious. So some extra efforts to convince them about the value of the product is probably working, and is helping us to save the cost of running a freemium program.
What are these extra efforts?
- To ensure that the product does what it claims it does.
- To go beyond scripts to ensure customer delight.
Below is a mail from a core team member of a tier 1 mobile app validating these points. It’s small appreciations like these that gives us confidence to continue choosing ‘value’ over ‘pricing’.
For those who are not aware about Finotes (https://finotes.com), it’s a tool that detects bugs in mobile apps in testing and production stage.
