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Freemium Works; MailChimp Proves It

Posted on 10.26.2010

Kudos are in order for Atlanta based email service provider MailChimp which passed the 500,000 user mark.

The company is attributing much of its growth to the wildly popular freemium offering it offered in September 2009 (which Website Magazine covered online here and in print) where individuals and companies could sign up with up to 500 subscribers and send 3000 emails per month without incurring any charges.  

“Something that might surprise people is that going freemium didn’t totally skew our user base to teeny-tiny accounts full of ‘extremely small businesses’ with extremely small lists. We’ve actually seen our number of large customers grow. A lot,” says MailChimp co-founder and CEO Ben Chestnut.

In April of 2010, 12% of MailChimp’s paying customers had lists greater than 10,000 subscribers. In that same period, the percentage of the company’s total revenue from those larger customers grew from 48% to 65%.

MailChimp is now delivering apprximately 700 million emails each month and expects to exceed 1 billion email in November 2010. 

The freemium model seems to be working well and MailChimp is not only continuing the offer but expanding it. Users can now have lists up to 1,000 users and send up to 6,000 emails per month. 

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