Free Forever!...Maybe

Great piece for start-ups considering Freemium.

http://techcrunch.com/2012/11/04/should-your-startup-go-freemium/

This article by Jules Maltz and Daniel Barney from Institutional Venture Partners is remarkable for its combination of depth and brevity. Every company considering Freemium should read it. 

Two elements that are often overlooked in freemium, Trials and Immediate Conversion, are discussed. I find the efficiency of these two factors tend to be the difference between a 2.5% overall conversion rate and 7.5% conversion rate (your mileage may vary).

One factor that would be interesting, particularly from a VC perspective, is how they value free users. I talk to a lot of startups that see freemium as part of MVP and that once they get funding they'll "figure out" the real model. 
The result is usually an extended quasi-beta period -- which ends up looking like the proverbial horse designed by a committee -- eventually you want to charge for it but there's really nothing unique that's worth paying for. 

The best decision is always to pick a model at the beginning and believe in it, because if you don't believe in what your doing, sure as hell no one else will.