Lessons from the new sales model
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The document provides lessons on new sales models for software based on changes in discovery, distribution, and user preferences. It recommends that companies 1) understand what has changed in the industry, 2) decide if their product and company are suited for the new model, and 3) choose between offering a freemium or free trial version while noting the appropriate situations for each. It also stresses that companies cannot successfully operate two models at once and should focus on a single approach.
Lessons from the new sales model
- 1. Lessons from the new the sales model Kenny Van Zant @kennyvz
- 2. 1. Know What Changed New Not New Discovery & Budgets Distribution Organization enabling users to structures find, try & buy software IT departments
- 3. 2. Decide if You Can Is your product... simple enough to be understood by a user simple enough to be used without hand-holding serving a widely felt pain point able to have a variety of price points Is your company... capitalized to support the model led by product-centric, analytical people
- 4. 3. Trial or Freemium? Choose Wisely You are creating scarcity of time, features, or scale Know your user & buyer Don’t try both in one product (noise)
- 5. Choose freemium if... Your product needs time for value (Evernote) OR Your growth vector is viral (Dropbox) OR It’s a winner-take-all market (GitHub) AND You are capitalized for it (freemium gestation period)
- 6. Choose Free Trial ... everywhere else. Buyers self-select (signal vs. noise) Easier to build sales model Generates Revenue $ooner
- 7. 4. Can’t build two models at once Golden Motion Monkeys beat spreadsheets Think Pyramid, not Hybrid Hunter/Farmer model flips