is "free" always a good selling point?

Discussion in 'Growing and Managing a Business' started by Oleena Mak, Apr 26, 2017.

  1. Oleena Mak

    Oleena Mak
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    I work for a SAAS company that provides a completely free payroll and HR software platform for small businesses. Think ADP, Ceridian or WagePoint - but simple and free.

    Our software works just as good as any other, but is "free" always a good value prop though? Do business owners care about that? Or do they just like to stick to products they know?
     
  2. allcitycleaning

    allcitycleaning
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    For SAAS free is often bad. One of the major components of SAAS is usually support and most free products offer no support. So, they are not really free, indeed.I will not place my house cleaning business in the arms of a software service provider that can leave me high and dry with something I have invested time and effort into setting up only to find out I can't make it work and can't get any help.

    Bad idea,
    Julia
    All City Cleaning Olympia, WA
     
  3. Smith-K

    Smith-K
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    This will work well only and if you have a good monetization plan in place. A person cannot trust a company offering free services, as there is no guarantee the company will be up and running in 6 months time.
     
  4. Jeff Rodburg

    Jeff Rodburg
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    This is what happens.

    For established companies, they won't buy it. You may get some clients who are business owners who have little to no experience. But in time, they might realize that the inconvenience is not worth it. If it does not have a positive ROI, they will find better options.
     
  5. J_Liu

    J_Liu
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    This kind of "free" offer is not good for a business. If a business would really like to get the attention of the consumers by giving our free offers, use it as a promotion but not entirely use it as a business plan.
     
  6. rudradhar

    rudradhar
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    I think even if you want to sell any payroll software you need to give for free for some period of time so that the future buyer will know if he want to buy it or not and he can suggest some changes if needed, According to me free is something needed in this competitive world.
     
  7. dbs00

    dbs00
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    Free is always good to attract customers, and its great at maintaining them as well.
    Add some extra features in a paid plan ;) Add a referral system and set it that way users will get free premium access when their inviting a nr of leads. Give them a commission on sales.
     
  8. Brooke Harper

    Brooke Harper
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    Hey, Oleena.

    We're also a SaaS company that provides a CTI solutions to different industries. We offer a free trial, but revert to a paid subscription once the trial period is over. There are some great free SaaS software out there, but the thing is, it's hard to come by free ones that offer after-sales support like the ones offered by paid software.

    Instead of offering a free for all scheme, maybe you can offer a free trial or a free demo so prospects can try out your product? If they like it, they'll definitely pay for it.
     
  9. Nessem Degen

    Nessem Degen
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    Oleena,

    No, free service mean no guarantee since it was given as free.
    Client/Customer will stick with previous program and will not take risk since business do think that way.
    You sell it as free trial then do a magnificent job then the if they want/agree then charge for the future.
    Its all in the product when it come with business men.
     
  10. rf-harris

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    Everyone attracts to this "FREE" word and it is a proven method to attract clients. Our Company also started out providing free domain and web hosting with its web designing packages and it did help us in getting more clients.
     
  11. V9Poker.com

    V9Poker.com
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    Yes this kind of "FREE" method is always proven can attract more clients. But the down size it's like you are burning away your money. If you just start a business with low budget, i don't really recommended using any "FREE" method.
     
  12. gagan kanaujia

    gagan kanaujia
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    no , i don't think so . there is always question mark for customer to think it must be trap and for the long term player it there must be loss.
     
  13. CouponZeta

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    Free is not something permanent, Think in a business person perspective, will you really make something & put it in the market for free! Never. If the product or any service came up free, that could be for holding the new users or for building the brand outreach. Think if a tool is providing free service, do you really think that the service will remain the same for years? no that will last at some point and the person who got habituated for it should think about going for paid service. So nothing will be free, that's a business tactic to hold the business
     
  14. Smith-K

    Smith-K
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    This..I believe affiliate program can do wonders if implemented properly. Since, you are offering SaaS product you would want to have a CPS payment model in place for affiliates. You can also study what affiliate model other SaaS companies are offering and then structure your affiliate program according to that. Affiliates love getting paid fast and I am sure with proper fraud tracking tools in place and a proper tracking system.
     
  15. Cagesent

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    "Free" word is not bad but i think products at least required some time consuming process like free for some time including one month, two months or so on. because if the company is verified then i think free is not proper word for products.
     
  16. Charu494

    Charu494
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    Its not bad. I think you can also provide some special offers to bring efficiency in your business. Because it sometimes become a need to sell free to beat your competitors.
     
  17. snegyK

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    Depends on what "free" costs to the business. If due to the "No payment" decision the end product is no good then I believe a serious business owner will not join. If the company offering the service does not allow for good customer service and has not thought of the source of money to allow for this I believe it will not be able to keep customers and hence gain new. Free features would be much more appreciated.
     
  18. zenmasta

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    Some years ago I was in the process of upgrading our businesses phone system. The options at the time were a free open source solution or commercial solution. I tried both because the commercial had a trial that was limited in features but useful enough to test the majority of what we needed. I had spent a significant amount of more time with the free open source option but couldn't find the support I needed through user forums.

    Ultimately I went with the commercial solution because I was able to set it up mostly by myself BUT there was still technical support available if I needed it. A lot of times open source and free sounds great but if there is no support then it can be a nightmare when you are just stuck and can't find help. In the end, we still saved money with this commercial solution over what we were paying before.

    As others have said, free i not always free. But not all business owners know that.
     
  19. Yellow Room Learning

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    I think 'free' can work. I know that small businesses will often use free services in order to help them get established and as long as the product is decent then businesses will continue to use it as they grow, and I'm guessing they then start to pay for it. If the product is below standard then people won't use it, free or not. Just need to make sure other areas of the business are generating revenue however!
     

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