As I was working with MailChimp this weekend, I stumbled across a blog article they shared about the success of their new Freemium business model approach. They took the "freemium" route a little more than a year ago, and their numbers look like this:
- They're adding over 30,000 new users and 4,000 new paying customers each month.
- The number of paying customers has increased over 150% and profit has increased over 650%.
- Profit has increased mainly because cost of acquisition has been dropping. It decreased 8% in just the last quarter to under $100.
- They're delivering roughly 700 million emails per month.
Those are some nice numbers, and I appreciate them sharing the profit ratio. A lot of times you'll just read that revenue has gone up, with no mention of profit, and I'd rather read about profit.
They share many more numbers on their blog post, so if you're interested in the freemium approach, I recommend checking it out. Here's a link to the MailChimp freemium article.