Ask HN: Conversion rates for free software + paid software?
4 comments
18% was reasonable for BCC back when it was downloadable. I got approximately 1.5% of downloads to convert, so that would be about .27% as you are measuring it. Different markets, different acquisition strategies, and different apps will have vastly different numbers here. It is also highly sensitive to time of the year in my market.
If you haven't looked at it before, optimizing a) the installation, b) the first run experience, and c) the checkout funnel (hint: start that funnel in the application, ideally roadblocking a customer from something they urgently want to do) produce big wins for comparatively little investment. For example, for ~3 hours teaching people how to install software, you can get a big win in successful installations. (You are likely counting 18% of visitors initiate downloads but, unless you take efforts otherwise, you have no clue how many downloads actually result in successful installations or executions of the product.) Try downloading Skype and steal everything they do.
You can really increase download rates if you send targeted traffic at landing pages designed to encourage installation. (AdWords converted upwards of 25% for me, though I eventually "bid that down" by getting less qualified customers, because it was still profitable.)
If you haven't looked at it before, optimizing a) the installation, b) the first run experience, and c) the checkout funnel (hint: start that funnel in the application, ideally roadblocking a customer from something they urgently want to do) produce big wins for comparatively little investment. For example, for ~3 hours teaching people how to install software, you can get a big win in successful installations. (You are likely counting 18% of visitors initiate downloads but, unless you take efforts otherwise, you have no clue how many downloads actually result in successful installations or executions of the product.) Try downloading Skype and steal everything they do.
You can really increase download rates if you send targeted traffic at landing pages designed to encourage installation. (AdWords converted upwards of 25% for me, though I eventually "bid that down" by getting less qualified customers, because it was still profitable.)
Sorry for delayed reply and thanks for taking the time to write! I read your BCC blog posts before in the past, it's very cool you take the time to post thanks!
I can't comment on conversions with both a free version and non free, but I can comment on just a landing page optimized to sell. With very targeted traffic coming from a recommendation such as a positive blog or a glowing youtube review I've seen conversions of up to 20%. Very specifically targeted traffic without reviews (or what one might be called a pre-sell) can get up to 8% conversion, but that's if your software solves a really specific issue and you've got great copy hitting the benefits you will offer and a good funnel urging people to buy. If you're just getting people who are only vaguely related to the problem you're trying to solve, you will not even see 1% conversion.
This of course depends a lot on the price point, target audience, and most importantly source of traffic. If you're getting very targeted traffic and you've got a great landing page emphasizing the benefits, you will see better conversions if you're not hitting those points.
This of course depends a lot on the price point, target audience, and most importantly source of traffic. If you're getting very targeted traffic and you've got a great landing page emphasizing the benefits, you will see better conversions if you're not hitting those points.
I agree with landing page optimization but a few more questions to consider: What are you doing to up-sell post-signup? Are you holding webinars, doing newsletter campaigns? The sign up process should also be so simple. The problem I see so often is trying to get too much info about the customer upfront. Are you sending emails to free users incentivizing them to upgrade? Are you giving away too much in the free version that there is no incentive to upgrade? Understand how your customers are using the free version and let them know how much more they can do in the paid. I agree that less than 1% converting to paid compared to the 18% is too large.
Stupid error (posting at 5am lol) it's 0.7% not 0.007%.
Our sample size is pretty healthy (we are talking in the tens of thousands here not hundreds).
For other people who sell software online with a free edition available, would you be able to share your numbers? To me the gap between 18% and 0.007% seems disproportionally large. Can anyone tell me if this gap is too large?