Tip: Monetize free users by offering them a new revenue stream and taking a cut

Giving money to someone is much easier than getting money from them. If your freemium users aren't converting, monetize them anyway by offering a solution that brings them revenue, and taking a percentage.

When Vivek Khandelwal of iZooto realized that his freemium users were unlikely to ever become paying customers, he found another way to monetize them. Now, nearly 90% of his free users are bringing him revenue. Instead of asking them to spend money on his product, he found a way to generate revenue for them, and took a cut. There isn't a one-size-fits-all approach to this, but it's worth considering whether your product can be tweaked in a way that brings in some extra cash for free users. In Vivek's case, iZooto helps publishers engage their audience with web push notifications, so he offered to push ads to the free users' audiences. It generated revenue for them, and he took a percentage.

More 30-second growth tips?

We share a tiny, bite-sized tip for growing your business a few times a week. Click here to see more and get Growth Bites in your inbox 👌

Trending on Indie Hackers
I sold my first bootstrapped SaaS business. AMA! 19 comments Customer acquisition when broke... 11 comments Facebook is (becoming) the new Yellow Pages 9 comments How do you read this logo? 6 comments Creating code with Artificial Intelligence. Good or Bad? 5 comments What's the biggest challenge you face? 4 comments