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Slack’s free plan change is causing an exodus

blog.zulip.com

481–490 of 790 posts

Re: Slack’s free plan change is causing an exodus

#481
post #163

People should understand this: A free tier is a loss-leader, intended to support sales of the paid product. If too many “…have been happily using Slack’s free plan for years”, then Slack will have to change the terms. Generally, storage and access to storage cost money. If you aren’t paying for it, it is definitely temporary, whether anyone says it explicitly or not. I don’t just mean in a “nothing lasts forever” way…

Everybody understands this.

Here’s what companies don’t understand: if you promote your product through a loss leader — which is arguably how Slack became popular in the first place — changing your pricing at a later date will piss people off.

You’re trying to put the blame on the consumer here which never makes any sense from a business perspective. If your loss-leading pricing strategy was unsustainable from the start, that’s on you.

It doesn’t matter if the product is “worth it” because when you piss people off, they will gladly put in effort into migrating to another provider they can trust, because that’s what it’s all about: trust.

The latest Google Apps fiasco is a great example of this, where Google eventually had to backpedal due to the massive backlash.

It’s simply a consequence of just staring at the numbers, without properly understanding the psychological effect of taking something away from what is, despite the zero income but rather in a sense of trust, a customer. It’s just a customer you failed to get any revenue out of, and that’s your fault, not the customers.

Changing pricing pisses people off. Killing features pisses people off. Bad communication pisses people off. It’s really not that hard.

At the end of the day you’re making a deal with the devil with these overly optimistic loss-leaders, because you’re getting growth you never would have gotten otherwise. Failing to capitalize on that and then blaming the users while throwing features out the window is just not good business practice.

Re: Slack’s free plan change is causing an exodus

#482

Earlier quoted context omitted.

I'm interested in matrix, how can I learn more and can you choose providers or clients, any recommendations?

Element [0] is the main/most popular client. FluffyChat [1] is also good. They both have web, Android, iOS, and desktop (Electron) apps. There are at least a dozen other clients but those are the only two I've tried so far. For hosting, I believe the flagship host is Element Matrix Services [2]. It's made by the same organization that leads development (it is all FOSS) of Element and the reference server Synapse. You…

Legend

Re: Slack’s free plan change is causing an exodus

#483
post #163

People should understand this: A free tier is a loss-leader, intended to support sales of the paid product. If too many “…have been happily using Slack’s free plan for years”, then Slack will have to change the terms. Generally, storage and access to storage cost money. If you aren’t paying for it, it is definitely temporary, whether anyone says it explicitly or not. I don’t just mean in a “nothing lasts forever” way…

> If you aren’t paying for it, it is definitely temporary

the reason big SV VC are shilling web3 so hard.

Re: Slack’s free plan change is causing an exodus

#484
post #8

Earlier quoted context omitted.

The CUE team was looking at a $8k monthly bill for keeping Slack. The money Slack wants can be pretty outrageous when most users don't even chat. Add on top that a single user is likely in several orgs, the money they make per user is approaching usury, if you'll pardon the pun CUE is keeping Slack for now and accepting limited history https://github.com/cue-lang/cue/discussions/1839 has an overview of the situation…

Zulip is a very good fit for open source communities, and much much better for communication than Slack. I hate how Slack encourages you to say everything in the main channel, threads are close to impossible to use. They're a tiny section off to the side and you can't easily navigate between them, it's really badly done.

I've been super impressed with Zulip's thread system in technical chats. But how is Zulip itself in situations where you mostly want channel-wide banter, with the odd thread spawning off of that?

Re: Slack’s free plan change is causing an exodus

#485
post #484

Earlier quoted context omitted.

Zulip is a very good fit for open source communities, and much much better for communication than Slack. I hate how Slack encourages you to say everything in the main channel, threads are close to impossible to use. They're a tiny section off to the side and you can't easily navigate between them, it's really badly done.

I've been super impressed with Zulip's thread system in technical chats. But how is Zulip itself in situations where you mostly want channel-wide banter, with the odd thread spawning off of that?

It's been fine for us, just detach that thread or create a new one and link.

Re: Slack’s free plan change is causing an exodus

#486
I would take this post with a grain of salt given it's written by a direct competitor who has many reasons to have a biased point of view. That they noticed people signing up in troves on their platform is a totally valid point. They do mention that fact, but a big disclaimer is the kind of information you'd like to see at the top of the article.

Re: Slack’s free plan change is causing an exodus

#487

Earlier quoted context omitted.

True, but there’s also something vital that does not show on the balance sheet (and can sink companies): Excellent tools spread through the best kind of word of mouth. Excellent tools that are free spread even faster and further. There’s no way to know how many corporate plans were sold because a single team member relied on Slack outside of work, or how many pro user accounts exist because someone was visiting a Sla…

It's very similar to Salesforce's Heroku move. They either just don't care about that sales funnel and they remove it completely or they will keep squeezing until they kill it.

I think this, combined with Heroku, marks end of an era.

These tools built themselves on being free (as in beer) up to a certain extent, and now they're big enough, and trust their momentum, so they change their stance.

This will inevitably create some changes, both how they perceived and being developed, but we'll see...

However, web application development is much easier and scalable infrastructure is democratized now. Their moat may not be as robust as they imagine.

This will get interesting.

Re: Slack’s free plan change is causing an exodus

#488

Not all software should be or can be free. If you’re using a FREE product you should have zero expectation of service or reliance on that product.

Specially no service you don't host yourself can be free. It can be paid by adds, but expecting someone else to run servers for free for you is insanity.

Re: Slack’s free plan change is causing an exodus

#489
post #163

People should understand this: A free tier is a loss-leader, intended to support sales of the paid product. If too many “…have been happily using Slack’s free plan for years”, then Slack will have to change the terms. Generally, storage and access to storage cost money. If you aren’t paying for it, it is definitely temporary, whether anyone says it explicitly or not. I don’t just mean in a “nothing lasts forever” way…

I think they made a mistake disallowing single user upgrading to paid plan.

Non-corporate users will migrate to Discord, Slack will cut resources costs = more money without new users. Everyone happy, just allow us to export data ;)

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