Freemium models continue to go from strength to strength …

At Sapien we are becoming increasingly bigger users of freemium SaaS, and a number of our clients are incorporating freemium strategies in their business models.

Our favourite freemiums include Evernote, Dropbox, RTM (Remember The Milk) and Kashflow ( – a good UK example).

For users, freemium solutions offer the opportunity to experience the basic functionality of software for free with the option to access a fuller, paid-for service (often ‘Pro’ account) later.

For SaaS start-ups, the freemium business model acts as as a viral marketing ‘accelerator’ to gain users. There’s a useful discussion on freemium being used by start-ups by Om Malik here – including the interesting stat that 0.5% of Evernote users convert to fee paying.