The Startup Ideas Podcast
The best businesses are built at the intersection of emerging technology, community, and real human needs.
Free Product as Market Entry Strategy for Hard-to-Sell Segments
When targeting customer segments known for difficult sales processes, offer the initial product for free to establish relationships and trust before monetizing
Decision Rule
If the customer segment is notoriously hard to sell to, consider giving away your first product to get in the door
How It Works
Overcomes initial resistance, proves value through usage, and creates switching costs once integrated
Failure Modes
Never finding a way to monetize the free users
Attracting only low-value customers who won't pay
Not having a clear path from free to paid
Example Decision
“Give away the school absence line system for free to get integrated into school systems, then upsell additional administrative tools once established”