Achieving Micro Tenancy in PLG Companies with Freemium Business Models
SaaS Engineering Talk by Rabi, Founding Engineer at DevRev
What do some SaaS products have common with narcotics? They employ Product-Led-Growth, PLG for short. Make it easy for some folks to try out your product, give away some stuff for free and make them pay once they’re hooked.
Unfortunately, conversion rates with SaaS products aren’t as good - something like 5% of users convert to paying customers and they have to subsidize the rest of the 95%. For example, I’m not paying Substack .. yet.
What’s this got to do with SaaS Engineering, you wonder? Basically, to support this business model, the software architecture has to be extremely scalable to handle loads of freeloaders and yet be highly configurable for your paying customers. Rabi talks about how they approached this challenge.