Hi HN, over the past few months,Mark Bao and I have been trying to figure out how to exactly launch Ramamia, our family sharing app.
Link here: http://staging.ramamia.com
We've been in beta for a number of months and this is our kind of final product. At first, we were going to go for a premium model, as in: the only plan we have is a $40 a year or $5 a month plan, with a 21-day free trial.
We're not sure how we will generate steady incoming traffic. So I thought--why not use free as a marketing tool? So thus--freemium.
We're just not sure about how we are going to generate a stream of incoming traffic for our app, which is a big problem. Should we go freemium or stick with premium?
Keep in mind... with a freemium model, we'd restrict a number of things like # of photos per month, remove video functionality, etc. but there will be still a lower conversion rate to prem... though we might get more leads from 'free' valprop.
The nice thing with this type of product is that people upload photos and videos of family members mainly to share with other family members, so right there you have inherently viral behavior. Your job now is to make it as frictionless as possible.
Add in those viral channels. Make it easy to share via Facebook or email. I can't sign up for the product to see what you have enabled, but you should have Facebook Connect at the very least. I'd use Google Friend Connect, Yahoo's equivalent, and MSN's as well to make it easy to import contacts and email them a photo or link to a group of photos with one click.
Do you have embeds? Can people embed a family video on their blog trivially from your site? Can they share it via Twitter with a click?
Just spend some time figuring out how your users want to share these things (this is one of those rare instances where simply asking them will return high value info) and make that easy as pie.
So there's your traffic. Freemium seems to be almost a necessity here. I really can't think of an alternative monetization model that makes sense.
Premium-only is death to viral spread. If you decide to go that route, I'd assume you'll have to purchase traffic via AdSense and the like. Get some metrics in place early so you can calculate CPA and RPU. Test with a few thousand bucks worth of ads. If your RPU turns out to be a large multiple of CPA you're set. Just know that with premium only you're aiming for relatively low traffic and relatively high RPU. Not a bad way to go for the right product, but you need to be insanely metrics-driven to make that work.