More Freemium and Startup Marketing Thoughts

Photo by Luke Stackpoole on Unsplash

Here are three very raw startup marketing thoughts that have been running through my head lately…

1. Freemium will be a dominant business model in software and online services. It is easiest to execute when disrupting large existing categories with strong demand. It is more challenging to execute when growing a new category through aggressive marketing spending. Getting all the pieces right will dramatically improve your ability to market and grow a freemium business. Premium only is rarely a viable option — you will eventually lose to the company that introduces a freemium model in your category.
2. Early stage marketers that aren’t looking at the full business picture likely won’t be successful. Most of the obvious marketing levers are irrelevant without the right business model, product/market fit, tracking systems, etc. Early stage marketers need to spend time perfecting the whole economic picture. Marketing might not even be the right title to give this role, but the marketing function is a critical component.
3. The traditional Silicon Valley rift between engineering and marketing is shrinking. The increasing importance of analytics in marketing means effective marketers can more easily connect with mostly left brained engineers. Additionally, some of the most leveraged online marketing activities require close coordination with engineering (such as viral marketing and conversion optimization). The trend of great marketers coming from engineering backgrounds will likely accelerate (and no — I don’t have an engineering background). Still, all tech marketers will need to have a good balance of right brain and left brain talents.

I plan to expand these thoughts in future posts.