“If you’re contemplating a freemium model, there’s going to be pain in the beginning” — Paul Ganev, Surfline

Surfline, a wave forecasting app initially launched as a 1-800 number in 1985, has evolved into a successful subscription-based service that provides surfers with real-time information on surfing conditions. Paul Ganev, Surfline's VP of Strategy, Business Development, and Analytics, emphasizes the importance of focusing on the serviceable addressable market (SAM) rather than the total addressable market (TAM) to ensure business success in niche markets. He highlights the significance of understanding purchasing power, user commitment, and the value proposition when determining pricing for niche apps like Surfline, given the limited number of surfers and coastlines. Additionally, Surfline employs a freemium model, offering a compelling free experience to attract users organically, with the potential to convert them into paying customers over time. To optimize revenue from free users who may never subscribe, Surfline uses unskippable ads and partners with brands to provide exclusive offers to premium subscribers, thus enhancing user value and increasing average revenue per user.