We are toying with offering our newest HR application as a freemium service. We will market our other solutions inside of the web application and offer upgrade opportunities.
The system provides paperless employee onboarding and employee file management. On it's own, it is not a high dollar item for most companies, but provides real value. The employee onboarding page is one of the most visited pages on our website and we are not converting on our paid model.
Based on our experience to date and what I have read, I would think this would require substantial volume to reach the ROI. I know that we will have continued maintenance of the product and I know people still expect support even when it is free.
The thought process is that we could reach many more users on the app faster, sell other products, and upgrade people over time. We would get quick feedback from the early users and identify what features they would be willing to pay for.
Has anyone successfully executed the freemium model or executed poorly and have guidance to share?
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