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#27151 by just4fn
Sun Oct 18, 2009 6:58 am
What if-- Ooma gave the Telo away for free?

What if Ooma made gave it way but made a 2 year commitment for 120.00 a year which would equal 240.00- almost current price of the Telo. This way 100% of people would be on the premier service and when it is over and subscribers love it, they will continue with the premier service.

This beats the 25% on premier right now. I would think Ooma would love to have everybody on Premier service. The hardware is easy money, The subscriptions are the tough part. Don't leave it to the whim of a customer make them love it and they will return.

Sure giving away hardware is expensive, but I think it would be recovered with 100% buying Premier.

Obviously account issues would need to be worked out so you couldn't quit after 2 years and buy another but I think this could work.

Of course they would still sell the handsets and probably sell more since the hardware would cost nothing.

Just a thought.
#27159 by hpepper
Sun Oct 18, 2009 7:24 am
...or maybe just give fee Premiere for one year - People would be more hooked after a year than 2 months, it seems to me.
#27161 by just4fn
Sun Oct 18, 2009 7:33 am
By looking at reviews on Costco.com, the reviews are fabulous. Once introduced to Ooma people love it. Getting the Telo in homes is the main object and then selling premier. How cool would it be to have millions in homes and most likely 75% resigning for Premier!

This would be the same as Selling the Telo for 240.00 and giving 2 years of Premier. It all depends on how you market it.
#27164 by allo
Sun Oct 18, 2009 7:42 am
just4fn wrote:What if-- Ooma gave the Telo away for free?

What if Ooma made gave it way but made a 2 year commitment for 120.00 a year which would equal 240.00- almost current price of the Telo. This way 100% of people would be on the premier service and when it is over and subscribers love it, they will continue with the premier service.

This beats the 25% on premier right now. I would think Ooma would love to have everybody on Premier service. The hardware is easy money, The subscriptions are the tough part. Don't leave it to the whim of a customer make them love it and they will return.

Sure giving away hardware is expensive, but I think it would be recovered with 100% buying Premier.

Obviously account issues would need to be worked out so you couldn't quit after 2 years and buy another but I think this could work.

Of course they would still sell the handsets and probably sell more since the hardware would cost nothing.

Just a thought.


75% of the present customers would quit OOma if they were made to pay for Premier! At the present time only 25% subscribe to it!
You have to keep in mind that most people do not want all those extras... all they want is to be able to make and receive calls as needed!
These forums have about 5,000 members (and not all of them are customers!), and according to estimates OOma has about 50,000 customers by now...
It goes to show you, only less than 10% of the customers are interested in the extra curricular activities of their phone service... the same goes for the extra features of their cal!ing hand sets.
Last edited by allo on Sun Oct 18, 2009 7:45 am, edited 1 time in total.
#27165 by hpepper
Sun Oct 18, 2009 7:43 am
just4fn wrote:By looking at reviews on Costco.com, the reviews are fabulous. Once introduced to Ooma people love it. Getting the Telo in homes is the main object and then selling premier. How cool would it be to have millions in homes and most likely 75% resigning for Premier!

This would be the same as Selling the Telo for 240.00 and giving 2 years of Premier. It all depends on how you market it.


I see your point - But just don't think it could work to give it away free. I had read about a similar business model with ink-jet printers (not sure if it was HP or not) That the printer manufacturer could afford to give away free printers because they made up profits from ink - the ones with the chip in them so you couldn't refill or buy off-brand. But the whole problem came down to how to control a free item - people taking it and printing and throwing it away or not even using it.
#27168 by just4fn
Sun Oct 18, 2009 7:59 am
Resigning for Premier is not an option. On the 3rd year you re-up- just like a cell phone or the service is discontinued. If the product is what you say it is and it has proven to be, there is no doubt people would re-up.

The problem with the printer is there were a lot of alternatives. Of course there are alternatives with the phone service's but this isn't bait and switch. Ooma is a great service and once customer have it in there homes they will see the VALUE and continue with it. You can go online and check out all other voip company's. There a many different strategies. Again once the hardware is in your home you see the value and quality you will continue.
Last edited by just4fn on Sun Oct 18, 2009 8:02 am, edited 1 time in total.
#27169 by allo
Sun Oct 18, 2009 8:02 am
just4fn wrote:What if-- Ooma gave the Telo away for free?
...
Sure giving away hardware is expensive, but I think it would be recovered with 100% buying Premier.

Obviously account issues would need to be worked out so you couldn't quit after 2 years and buy another but I think this could work.

Of course they would still sell the handsets and probably sell more since the hardware would cost nothing.

Just a thought.


Only Microsoft and Google can give things away for free- because their bank accounts are bursting at the seams!
OOma would go under in less than 3 months if they were to do that... let alone 2 years to collect those funds!
OOma like most start up companies had to borrow money to survive until now (latest they borrowed/got about 18 Million, less than 4-6 months ago!)... borrow is not the correct term, it is rather: giving/ selling a percentage of the business for cash (to Venture Capital co. (Companies with cash to make an easy and lucrative investment)

Vonage did something like that, I believe, and they lost their shirt when people did not stick around more than 2 years!
Last edited by allo on Sun Oct 18, 2009 8:07 am, edited 1 time in total.
#27170 by just4fn
Sun Oct 18, 2009 8:06 am
It wouldn't be free. You would have a 2 year commitment.
#27171 by allo
Sun Oct 18, 2009 8:10 am
just4fn wrote:It wouldn't be free. You would have a 2 year commitment.


They need cash up front to continue operating... not a 2 year commitment!
#27172 by just4fn
Sun Oct 18, 2009 8:11 am
The cash up front would be 120.00 from everybody and 120.00 every year after that.

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