Hello my fellow Evernote lovers of the world, premium users unite! Well, the awesome Evernote premium price of $5 is probably going away for good. In an article published on theguardian.com Evernote chief executive Phil Libin stated that the price would be going up in some areas and might go down in others. He also went on to say that the “$5 price was picked at random seven years ago when they launched and that it was the wrong price” at the Web Summit conference in Dublin.
Libin says that they have spent the last few months trying to weigh out the right price going forward, planning to unveil that information in early 2015. With current users between eight and nine million for premium that is a lot of money coming in. However, Evernote succeeds by charging for its premium service and not succumbing to ads. They do not data mine your information and sell it to anyone. A lot of companies could learn from Libin and the team at Evernote, with Libin saying “Our fundamental belief is that we make money when our users say ‘we love this product and we want to pay for it’.” If only other major corporations and services had the same mentality.
They are looking forward and attempting to provide enough revenue to provide a greater service to their users and with the current $5 subscription fee that isn’t really enough. I for one, completely understand and support this decision. As a premium user, I don’t mind paying for the service as it is really that good. However, hopefully the pricing doesn’t get too much higher than what it is now. IF the price does go up substantially, the premium service will need to be overhauled a little to justify such a hike in pricing.
The advantage Evernote has is that they do not have anyone really competing with them. They do not have to worry about conflicting with their developers. The main key takeaway from Libin’s talk is that the free version of Evernote will remain the team’s number one focus. Going back to their fundamentals, they want people to pay for the service because they love the service, not because the developers started restricting the free service to the point that you have to pay for what you need. Libin stated, “It’s more important that you stay than you pay. The longer you use it, the more likely you are to pay for it.” Users who stay around with Evernote for three or more years are around 30% more likely to pay for premium, so once again they go off it’s more important that you stay than you pay. “Business models that rhyme are just better” Libin is quoted as joking around.
In the end, whether Evernote charges $10 for their service, it will be worth it. They have created the best experience in note syncing across multiple devices with the best features. Will it stay that way, or will some other startup take over with a cheaper option and force the hand of Evernote to drop their price again? I doubt it as many have tried over the past seven years and failed to draw away the user base from Evernote. The future could be different depending on the price point. What do you think about Evernote raising prices? Good move or not for you? Let us know in the comments section whether the price matters to you or if the service is good enough to warrant whatever price point they come up with.