UK start-up Crunch today disrupted the accountancy industry by offering its accountancy software service Solo free to customers.
By offering a free service AFTER the launch of its premium service, the company has turned on its head the so-called Freemium model.
Apparently the software ‘is identical to Crunch’s original premium product and allows users to manage their bookkeeping, raise invoices, record expenses and view their tax liability in real time, all at zero cost’.
Naturally, the idea is that new customers will use the free service and then upgrade to Crunch’s premier accountancy package that includes human customer support and more.
It’s a smart idea, but not one without risks. As long as the company’s existing customers don’t get the hump too much and the conversion rate is as high as Crunch expects then this could be good news for UK start-ups… and even better news for Crunch.
Monty Munford has more than 15 years' experience in mobile, digital media, web and journalism. He is the founder of Mob76, a company that helps tech companies raise money and exit. He speaks regularly at global media events with a focus on Africa, writes a weekly column for The Telegraph, is a regular contributor to The Economist, Wired, Mashable and speaks regularly on the BBC World Service.
