Don't Let Your Business Become a Victim of it's Own Success

Here is the link to my article:

https://www.linkedin.com/pulse/dont-let-your-business-become-victim-its-own-success-praveen-puri/

Is freeium technology a good business model for tech companies?

I am a strategy consultant who has worked with technology companies considering the freemium model.

While there have been some notable successes with the freemium model, most companies that implement it do not succeed because only a very small percentage of users ever become paid customers, and the gap between free and paid customers become too great.  When this gap occurs, the company can't recoup its recurring expenses.

There are 3 better alternatives:

1. The best is the free trial model, where the company offers a free trial of their complete version and, after a certain amount of time, the user must leave or convert to a paid customer.  

2. The application is free, but there are one-time purchases.  This model works very well for mobile games.  This model is different than freemium because it does not depend on a small subset of users becoming ongoing subscribers.  Instead, because purchases are one-off, a higher percentage of customers will buy on occasion.

3. The application is free, but consulting / services are offered for a fee.  In this case, since consulting / services command a higher fee than subscription charges, companies that elect this model have a much better chance to cover expenses, and generate a profit.

Results over flash: How Chicago-based startups lead the nation in VC returns

My latest Chicago Business Journal column is out:


https://www.bizjournals.com/chicago/news/2019/03/03/how-chicago-startups-lead-nation-in-vc-retruns.html

KISSed in the Face

Most designs and strategies start off as simple and elegant.  

But then the KISS (Keep It Simple, Silly) qualities of the plan get lost during implementation.  

As Mike Tyson put it, "Everyone has a plan—until they get punched in the mouth."  

The challenge is maintaining Strategic Simplicity®.

Why the "New Jersey" Model of Design Beats The MIT Model

In real-world design, New Jersey style (Worst is Better) beats MIT style.  

The latter model values correctness over simplicity, while the former considers simplicity to be slightly more important.  

NJ style wins, because customers prefer an easy-to-use 9/10 rated product than a more complicated 10/10.

Streaming and Entertainment Overload

A recent Wall Street Journal article (https://www.wsj.com/articles/oscar-in-the-age-of-entertainment-overload-11550898051) referred to a recent research project at Warner Brothers that found that, when people were confronted with hundreds of movies and shows to watch, they were more likely to default to a comfort choice, like a re-run of Friends.

This behavior is covered in Decision Simplicity (part of my Strategic Simplicity® Framework), which helps clients increase sales by making it easier for customers to make a choice.

When choosing is difficult, customers are paralyzed.  They either don't buy, or retreat to a past choice.

The 10 biggest challenges businesses face today (and need consultants for):

Uncertainty about the future. ... Financial management. ... Monitoring performance. ... Regulation and compliance. ... Competencies and recruiting the right talent. ... Technology. ... Exploding data. ... Customer service. My expertise, Strategic Simplicity®, touches all of them.