The article provides some interesting numbers to chew on:
- 150,000 users
- 15,000 business (let's call them customers)
- $50,000 in monthly revenue
- 6 lines average per customer.
Impressive numbers to backup traction! But they also tell the story of the freemium model very well.
Sendhub website lists cheapest paid plan at $25/month/line. This means that at most, they have 2,000 paid lines (based on $50k monthly revenue) and in the neighborhood of 400 paid customers.
These are still very good numbers and nothing to frown upon, but if you compare that to the massive adoption of the free accounts (150k users), it's very telling of how difficult it is to convert people from free to paid.
We used to offer a $10 plan but we found the margins were very low. $25 allows us to provide great support and very few users need more than the limits on the plan.
Line2 is $15/mo and it offers a pretty good service including desktop clients. Oh, did I mention they offer unlimited calls and texts? I'm using it for business - I ported my toll-free number to Line2 and I get unlimited calls and texts (!) with toll-free number. Yes, you read this correctly - I can text from my toll-free number and I can receive texts, too. The only thing they suck at is offering an API.
The article provides some interesting numbers to chew on: - 150,000 users - 15,000 business (let's call them customers) - $50,000 in monthly revenue - 6 lines average per customer.
Impressive numbers to backup traction! But they also tell the story of the freemium model very well.
Sendhub website lists cheapest paid plan at $25/month/line. This means that at most, they have 2,000 paid lines (based on $50k monthly revenue) and in the neighborhood of 400 paid customers.
These are still very good numbers and nothing to frown upon, but if you compare that to the massive adoption of the free accounts (150k users), it's very telling of how difficult it is to convert people from free to paid.