a16z Podcast

a16z Podcast: Pricing Free

Mark Cranney, Martin Casado, and Peter Levine

Posted August 19, 2016

Now that we know to price and plan early, price high — especially for category-creating or “pre-chasm” businesses — how do we handle freemium models?

While free to premium is a great way to get bottoms-up, often viral traction in an enterprise, the challenge is figuring out just where and how to “draw the line” between where free ends and paid begins. Especially for open source, which while not necessarily free/mium, is also affected by these questions. And in that case, how does one balance the developer community and desire to “spread the religion” within and beyond the enterprise?

All this and more in this episode of the a16z Podcast with Andreessen Horowitz general partners (who cover all things infrastructure) Martin Casado and Peter Levine and Go-to-Market and EBC operating head Mark Cranney. The trick, they tells us, involves layering … like layers in a cake.