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Hey everybody, new user here. I want to ask for your opinion on starting a company without having a plan to make money. Companies like Twitter and Snapchat take on this philosophy by giving away the product for free yet somehow think they will figure out how to make money later. Currently they are unable to successfully profit.
I am considering starting a SaaS freemium type company where taking a similar approach would make sense but monetization worries me. Say I get a large customer base, at some point I will try to convert them to paying customers. The percentage of conversion is very important but I have no way to determine this value. The amount of money I would charge is very low too, 10-20/month. To offset the low costs I am doing all development and maintenance of the product myself and intend to bring on sales people to bring on customers and compensating them with equity & high commission if our customers ever convert into paying ones.
I think growing first, and monetizing later is foolish but it seems to be accepted in the software industry. What are your thoughts on this approach to business?
I am considering starting a SaaS freemium type company where taking a similar approach would make sense but monetization worries me. Say I get a large customer base, at some point I will try to convert them to paying customers. The percentage of conversion is very important but I have no way to determine this value. The amount of money I would charge is very low too, 10-20/month. To offset the low costs I am doing all development and maintenance of the product myself and intend to bring on sales people to bring on customers and compensating them with equity & high commission if our customers ever convert into paying ones.
I think growing first, and monetizing later is foolish but it seems to be accepted in the software industry. What are your thoughts on this approach to business?
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