- The free product is compelling.
- Users of the free product inevitably bump into constraints as their usage grows.
- The constraints are removed by paying for a subscription.
Perhaps this is obvious, but in What do failed startups have in common? Erin Griffith writes:
Founders don’t ask themselves who is going to pay money for the product. “We see lots of freemium strategies,” he [Steve Hogan of TechRX] said. “Freemium is freemicide. Getting someone to upgrade from a service that is adequate and free never works.”
Adequate and free = users don’t bump into constraints as their usage grows, so they never pay.