In discussing how an enterprise network equipment company did freemium, Redpoint VC Tomasz Tunguz says, "It’s plain to see the marketing departments of freemium companies must be constructed differently, with a strong quantitative bent. But freemium businesses also require a fundamentally different sales team structure. "
I've mentioned before how cargo cult startups implement freemium business models without understanding why, other than the fact its been successful for others. This is a perfect example of that. Simply making your product free to try doesn't suddenly translate to freemium success. You must design your business around it, and that means you have to understand why freemium works.
I also found it fascinating that an enterprise hardware company has a freemium model. They're shipping physical goods to people for free, and then using their usage data to upsell or to learn how to sell similar businesses.
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