Flat world knowledge is not quite profitable with a conversion rate of 65% and ironically yousendit makes financial sense with a conversion rate of a mere 3%
The fact of the matter is that comparing freemium success just on the basis of conversion rates does not make much sense. At best it is an arbitrary number like the number of units sold. Only when other variables are taken into account does it make sense.
As in the retail model, no one would be influenced by looking at the units sold by the competitors unless other variables like price and expenses are taken into account.
However, this is exactly what people do when they are looking at the freemium model. People wrongly focus excessively on the conversion matrix. There is no denying the fact that it is an important matrix to monitor and improve upon, however, it is not something that can be useful in comparison unless the companies considered are very similar in terms of price, reach and cumulative overheads.
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