Itxaso del Palacio, PhD’s Post

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General Partner at Notion, Board of Directors Kauffman Fellows (class 18), Associate Professor at UCL

Last week, we hosted our Productique #2 event in Madrid. Meeting so many founders building product-first businesses in Spain was great. Some of them came from Barcelona, Valencia or Malaga, among others, for the event. I hope you found the event valuable. The topic this time: 💰 How to structure free value to get paid 🤑 💰 Two amazing speakers: Leah Tharin, B2B advisor to startups, Product and Growth GotPhoto.com | fotograf.de David Peterson, former growth Airtable and currently Partner at Angular Ventures Here are my takeaways from the presentation and panel discussion. You can see the full video in the comments (the initial 10 minutes don't have very good quality sound, but then it is good, and I would really recommend you to listen to it. It's so interesting!) 👉 The principles of scaling value: we give something for free, so we build intent, and then we ask for something (ie data or money); we give something again, and we ask for something again. 👉 Most customers that try the product, don't buy it. In the SMB sector, the conversion from free to pay is around 7%. In the enterprise sector, the conversion from free (PoC) to pay is 20%. 👉 While many of the free users will not convert to pay, they can be a good way to promote your product (recommendations, worth of mouth) and they might bring on someone who might buy your product. 👉 Some free users don't pay only because the time is not right. They might convert to paid in the future, though. 👉 How do we define what goes into the free product and the paid product? ➡ What NOT to do: look at the features we have and define the ones that go into the free product and the ones that go into the paid product - please DON'T do this ➡ What to do: look into the usage, the features and the additional services, to determine the free plan (usage, unlimited) or paid plan. 👉 The reasons for customers to pay for the product can be: paying for features (the more features, the higher price) and/or usage (ie compute credits, API calls, etc). Most companies define their pricing based on a mix of both, features and usage. 👉 I don't think you can do PLG without PLS. Every user of a self-serve product reaches a ceiling when they need to talk to a business representative. In some cases, they need help because the product is too complex, they can use their personal card to pay because the price is already too high, or they have an individual use case, but they need to bring their team on board to collaborate. Big shout to Paddle, Amplitude and Amazon Web Services (AWS) for supporting us and Wayra for hosting us at their offices in Madrid. It is always a pleasure to work with you all @esther Leigh Anne Cooke Andrew Davies Paula Molinar Sarah W. Martina Niggli Stefania Hau Leon Rees Patricia Suhrcke Esther Trapadoux Marta Antunez Paloma Castellano Sebuh Mesfin

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Itxaso del Palacio, PhD

General Partner at Notion, Board of Directors Kauffman Fellows (class 18), Associate Professor at UCL

1mo

You can see the recording of the event here. The quality of the recording of the first 10 min is not very good, but it gets better right after. Worth waiting and watching :) https://www.linkedin.com/video/live/urn:li:ugcPost:7214312102977548288/

Adriana Landaverde

Product Leader for Scale ups 🚀 | Product Advisor and Consultant | Stanford GSB MBA

1mo

It was an awesome event Itxaso del Palacio, PhD! I loved how well curated the speakers and the audience were. It felt super relevant and it enabled much deeper-than-usual conversations. Thank you for having me!

Leah Tharin

Product & Growth Exec. for B2B Scaleups. leahtharin.com - CPGO @ GotPhoto until Q4 '24

1mo

This was a lot of fun, thank you for organizing it all!

Zahida Nazir ⭐Digital Marketing Expert

LinkedIn Ghostwriter | LinkedIn Marketer Helping you build an influential Personal Brand on LinkedIn | Boosting Social Media visibility and Engagement | SEO | Profile Optimization | Google Ads | Meta Ads

1mo

Congratulations Itxaso del Palacio, PhD on the success of the Productique #2 event in Madrid! The insights shared from the presentation and panel discussion are truly valuable for any product-first business. Your commitment to supporting founders and sharing knowledge is commendable.

Joe Haslam

Executive Director, Owners Scaleup Program, IE Business School & Professor, IE University.

1mo

Great event. It’s ages since I visited Wayra. Super interesting to listen to Leah and David. eskerrik asko Itxaso.

Darragh Mc Kay

Founder & CEO @ Noloco (YC S21) 🚢

1mo

This was a great event! Thanks for hosting Itxaso del Palacio, PhD Some amazing insights from Leah Tharin and David Peterson on free tiers

Itxaso del Palacio, PhD you are such an amazing ambassador for the Spanish ecosystem!

Francois Mazoudier

serial tech entrepreneur, investor, advisor; I build and help build great digital companies.

1mo

Now THAT sounds like a knowledge-filled event!

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It was an amazing event and content! Thank you very much!

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