Rory said a while back there is no free enterprise
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You only really do that when you are beta testing products or for the first few customers
Rory said back in Q4 they were having some clients test the Webinar solution. You usually don't charge people while you are testing.
Remember
Some direct sales companies have tens of thousands of distributors
Some direct sales companies have over a hundred thousand distributors
Not hard to see why VERB got to one million users and continuing to grow fast
There are a number of revenue models
You have companies that pay for the setup and pay for their distributors
You have companies that pay for the setup and charge their distributors a fee for the app, of which VERB gets a portion
You have companies that pay for the setup, pay for their customers to use the consumer facing app. Those likely are set fees but each additional market and model may to the revenue.
So yes, someone is paying for the app whether it's the client or their distributors
I can see a day were maybe clients pay for the app setup and it's free to use, but you pay to upgrade.
It's called a freemium SaaS revenue model
Why would you do this?
If you can make a ton of money on the upgrade and in-app purchasing, you are willing to give part of the functionality for free to begin with.
This is how Zoom and other SaaS companies do it, but that is not a one size fits all model and depends on your products, vertical, etc.