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The common advice for free tiers of a product is to “think about it like a marketing expense,” which is technically true; however, it still has a cost. Equals , a more robust spreadsheet product that allows you to integrate with data sources, wrote a great blog post this week about why they eliminated their free tier.
They say things like “we have a unique feature” and “the incumbents are dumb,” which might be true, but isn’t a strategy. There are not enough blogs or books about this phase; often leaders go underground. This impedes sympathy and the ability to deliver appropriate advice. Founders almost never have a real strategy.
Dharmesh: I think that was good advice. And I published this on my own startups blog. Because people don't love the incumbent right now. So it's a recursive function to say, oh, well, if the New York Times links to you, that's much more valuable than if Dharmesh's blog links to you because New York Times has more page rank.
15:05 – Providing advice as content vs in the product. 21:30 – Inbound marketing and audience building advice. We made up for the inefficiencies in the software by giving them good advice on how to optimize their website, and how to get going in social. 10:00 – HubSpot’s first customer.
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