Sunday, June 12, 2005
Salesforce.com's bet pays off
I've heard good things about SalesForce.com....will need to check them out again.
As a company that launched its business on a risky-but-bold strategy -- give the web-based service away initially for an entire year -- Salesforce.com continues to reap the benefits of that big bet.
The company announced today that revenue nearly doubled to $64.2 million from the same period last year and was up 18 percent on a sequential basis. It also added 40,000 paying subscribers, ending the quarter with 267,000.
Salesforce.com's strategy is a good lesson for companies that put too many barriers in the way of try-before-you-buy. If your trial strategy requires more than 2-3 pieces of personal information, or a credit card ('unless you tell us otherwise, your credit card will be charged after 30 days of usage') or no trial at all, start over.
Today, Salesforce.com gives its service away just for 30 days yet it remains an unconventional company with an unconventional approach, thanks to founder and CEO Marc Benioff."
(Via Church of the Customer.)