CATEGORIES
- NYC COVERAGE
- WEB STARTUPS
- WEB NEWS
- CONFERENCES
- WEB TECH JOBS
- VENTURE CAPITAL
- MICROSOFT
- INTERVIEWS
- ADVERTISING
- VIDEO
- ALL TOPICS
- ALL COMPANIES
CONTRIBUTORS
- ADRIAN CHAN
- ALICIA NAVARRO
- ALLEN STERN
- CORSIN CAMICHEL
- DRAMA 2.0
- DARREN HERMAN
- HANK WILLIAMS
- MARK DAVIS
- RICK TUROCZY
- SANFORD DICKERT
- SHANNON CLARK
- Comment on YouTube Down by DVS01
- Comment on Twitter COO Costolo: Advertising Coming To Twitter Soon by Satoshi Nakajima
- Comment on Twitter COO Costolo: Advertising Coming To Twitter Soon by OMG Stop the Web! Twitter is gonna run ads ? and Scoble says you?ll love it
- Comment on What?s Up With Yahoo Mail Delivery? by MJ
Upgrading your customers to paying plans… all you gotta do is ask!
One of the questions I am asked a lot is, "Allen, how do I convert my free-plan customers, to paying customers?" The answer I typically begin with is, "Ask them." Customers are happy to stay where they are. You need to poke and prod them to move.
Tonight, I walked over to the golden arches (I know I know….) to pick up some heat lamp food. I placed my order and the cashier (a young girl about 16) asked me, "Would you like 2 apple pies for $1 with the order." I replied with yes and she smiled. After I paid, the manager said to her, "see nadine, all you need to do is ask." Of course he had no idea I wanted the pies anyway! (I wish they would bring back the old-school pies, these new baked ones bite!) Then she tried a slushie. I said no to that. So she was able to "upgrade me" just by asking. Next customer in line also took the pies! Now the manager again tried to explain how just asking a customer if they would like a dessert item makes them think about it when they may not normally think about it.
Netzero is also a master of this technique. They poke and prod me to upgrade my mother's free subscription about once a month, sometimes offering a free week trial of their ultimate package.
So here is my suggestion for your startup. Gently poke your free customers every once in a while. Make it seem like upgrading is more than just spending money, but explain the benefits. Perhaps offer a trial of x time to incentivize them to upgrade. Remember, a good percentage of the time when a customer starts a trial upgrade, they will remain on the upgraded package.
If you give this a try, drop me a line and let me know if it worked for you. I would be happy to provide some guidance for options for the incentives and "poking" options. Most importantly please remember that if you don't ask your customers to upgrade, they may never make the jump.







From an Internet perspective, web hosting companies are masters at this as well. Start-ups looking for battle hardened marketing talent should look no further than headhunting marketing mangers of major quality web hosts. Great understanding of price points, service, up selling and packaging of a service.
Nice point there, Allen. I do believe though, that the pendulum can swing the opposite way. I must receive at least 15 e-mails a week from GoDaddy, offering me the same deals over and over. Great – thanks – but overloading my e-mail reminds me of spam.
I don’t like spam == I’m beginning not to like you, GoDaddy.
Keep up the great work, Allen!
Great article again.
Unless you try you never know.
Referring to other comments you do need to ensure you strike the right balance though which is key.
Keep up the good work Allen.