They Called Us Insane: Why Making Our AI Product FREE Exploded Our Growth!

Imagine like me, your customer is an Imagine like me, your customer is an overworked doctor. They don't really overworked doctor. They don't really overworked doctor. They don't really take sales calls. They don't really take sales calls. They don't really take sales calls. They don't really respond to cold outreach. Um, and they respond to cold outreach. Um, and they respond to cold outreach. Um, and they usually barely have time to eat lunch. usually barely have time to eat lunch. usually barely have time to eat lunch. And that was our market. That was the And that was our market. That was the And that was our market. That was the one we chose where I'd worked and we had one we chose where I'd worked and we had one we chose where I'd worked and we had no money to advertise and we had to no money to advertise and we had to no money to advertise and we had to figure out how to get customers. The

figure out how to get customers. The figure out how to get customers. The problem was like, how are we going to problem was like, how are we going to problem was like, how are we going to get people to use it? How do we get our get people to use it? How do we get our get people to use it? How do we get our new product into market? You know, this new product into market? You know, this new product into market? You know, this wasn't a unique insight. There were a wasn't a unique insight. There were a wasn't a unique insight. There were a lot of companies that had a similar lot of companies that had a similar lot of companies that had a similar idea. You probably all remember the idea. You probably all remember the idea. You probably all remember the litany of different note and litany of different note and litany of different note and transcribers that you've all seen. And transcribers that you've all seen. And transcribers that you've all seen. And this was probably the biggest riskiest this was probably the biggest riskiest this was probably the biggest riskiest decision that we made in the whole

decision that we made in the whole decision that we made in the whole company. We made it free. Now all the company. We made it free. Now all the company. We made it free. Now all the CFOs in the room, hopefully not my CFO CFOs in the room, hopefully not my CFO CFOs in the room, hopefully not my CFO lead, my co-founder probably are having lead, my co-founder probably are having lead, my co-founder probably are having and had a heart attack still with us, and had a heart attack still with us, and had a heart attack still with us, you know. Um, and he was basically he

you know. Um, and he was basically he you know. Um, and he was basically he just couldn't I guess justify how such a just couldn't I guess justify how such a just couldn't I guess justify how such a computer heavy task um could be made for computer heavy task um could be made for computer heavy task um could be made for free. Like how is this business going to free. Like how is this business going to free. Like how is this business going to work? He's just going to burn all the work? He's just going to burn all the work? He's just going to burn all the money and die. Um, and it was money and die. Um, and it was money and die. Um, and it was terrifying, but it felt like we had terrifying, but it felt like we had terrifying, but it felt like we had learned enough from how doctors use learned enough from how doctors use learned enough from how doctors use these tools that we thought it was the these tools that we thought it was the these tools that we thought it was the right decision. Um, to give you an idea

right decision. Um, to give you an idea right decision. Um, to give you an idea of how terrifying it would cost us about of how terrifying it would cost us about of how terrifying it would cost us about a dollar to generate a note, give or a dollar to generate a note, give or a dollar to generate a note, give or take. So, some doctors would do about 30 take. So, some doctors would do about 30 take. So, some doctors would do about 30 visits a day. So, you know, we're pay we visits a day. So, you know, we're pay we visits a day. So, you know, we're pay we are paying $30 a day for a doctor to use are paying $30 a day for a doctor to use are paying $30 a day for a doctor to use Heidi with no revenue. Most people Heidi with no revenue. Most people Heidi with no revenue. Most people thought we were insane. Um, but we

thought we were insane. Um, but we thought we were insane. Um, but we didn't have any marketing budget. We had didn't have any marketing budget. We had didn't have any marketing budget. We had no money on ads. We didn't go to no money on ads. We didn't go to no money on ads. We didn't go to conferences. We had no outbound SCRs, no conferences. We had no outbound SCRs, no conferences. We had no outbound SCRs, no sales team. It was just, you know, 10 to sales team. It was just, you know, 10 to sales team. It was just, you know, 10 to 15 people, just us. And we realized 15 people, just us. And we realized 15 people, just us. And we realized early on after making it free that we early on after making it free that we early on after making it free that we didn't really need to buy ads. we needed didn't really need to buy ads. we needed didn't really need to buy ads. we needed to buy distribution like we had to find to buy distribution like we had to find to buy distribution like we had to find a way to get people using it and we took a way to get people using it and we took a way to get people using it and we took inspiration from the canvas notions inspiration from the canvas notions inspiration from the canvas notions figas all the products that we loved um

figas all the products that we loved um figas all the products that we loved um and we decided to treat that compute and we decided to treat that compute and we decided to treat that compute cost or the server cost as our marketing cost or the server cost as our marketing cost or the server cost as our marketing budget like we're all in there's no budget like we're all in there's no budget like we're all in there's no other option if we're going to do this other option if we're going to do this other option if we're going to do this like we can't really afford anything like we can't really afford anything like we can't really afford anything except um paying for the servers um and except um paying for the servers um and except um paying for the servers um and we thought that $30 a day on the face of we thought that $30 a day on the face of we thought that $30 a day on the face of it maybe seems too much but actually if it maybe seems too much but actually if it maybe seems too much but actually if you view this as a customer acquisition you view this as a customer acquisition you view this as a customer acquisition cost maybe it's not that bad, like we cost maybe it's not that bad, like we cost maybe it's not that bad, like we can find a way to reduce the cost and can find a way to reduce the cost and can find a way to reduce the cost and hopefully they will uh pat us on the hopefully they will uh pat us on the hopefully they will uh pat us on the back in some other way. And so we went

back in some other way. And so we went back in some other way. And so we went from traditional enterprise, you know, from traditional enterprise, you know, from traditional enterprise, you know, 90% gross margins to consumer app 90% gross margins to consumer app 90% gross margins to consumer app overnight. And we had to just remove

overnight. And we had to just remove overnight. And we had to just remove every single piece of friction on the every single piece of friction on the every single piece of friction on the product. So, we just had to make it product. So, we just had to make it product. So, we just had to make it super super super slick and easy and super super super slick and easy and super super super slick and easy and just deliver value like no credit cards, just deliver value like no credit cards, just deliver value like no credit cards, no sales call, no IT approvals, like no sales call, no IT approvals, like no sales call, no IT approvals, like just make it incredibly easy. Sign up in just make it incredibly easy. Sign up in just make it incredibly easy. Sign up in seconds. Kind of like hack them into seconds. Kind of like hack them into seconds. Kind of like hack them into experiencing the experience with a experiencing the experience with a experiencing the experience with a patient even though they didn't have a patient even though they didn't have a patient even though they didn't have a patient in front of them. Um, and they patient in front of them. Um, and they patient in front of them. Um, and they just got the magic straight away. And so

just got the magic straight away. And so just got the magic straight away. And so pretty much immediately, actually, this pretty much immediately, actually, this pretty much immediately, actually, this was like February 2024, by the time we was like February 2024, by the time we was like February 2024, by the time we went this direction, we just saw this went this direction, we just saw this went this direction, we just saw this immediate shift in behavior. You give a immediate shift in behavior. You give a immediate shift in behavior. You give a burntout clinician like like me burntout clinician like like me burntout clinician like like me something that will save them an hour a something that will save them an hour a something that will save them an hour a day minimum, sometimes 2 hours a day or day minimum, sometimes 2 hours a day or day minimum, sometimes 2 hours a day or more. And they definitely don't keep it more. And they definitely don't keep it more. And they definitely don't keep it to themselves. Like they tell everyone,

to themselves. Like they tell everyone, to themselves. Like they tell everyone, they tell the doctor in the next room. they tell the doctor in the next room. they tell the doctor in the next room. They tell all their patients. Some of They tell all their patients. Some of They tell all their patients. Some of those patients are clinicians as well. those patients are clinicians as well. those patients are clinicians as well. And it creates this incredible viral And it creates this incredible viral And it creates this incredible viral loop. So we found that pretty much if loop. So we found that pretty much if loop. So we found that pretty much if one doctor did about seven sessions with

one doctor did about seven sessions with one doctor did about seven sessions with the new version of Heidi, their the new version of Heidi, their the new version of Heidi, their retention was about 90% every week after retention was about 90% every week after retention was about 90% every week after that. So they just like they were stuck. that. So they just like they were stuck. that. So they just like they were stuck. They would never stop using it. It They would never stop using it. It They would never stop using it. It became an indispensable part of their became an indispensable part of their became an indispensable part of their daily workflow. And that was when the

daily workflow. And that was when the daily workflow. And that was when the commercial part of the business started commercial part of the business started commercial part of the business started to work. So once you earn their trust to work. So once you earn their trust to work. So once you earn their trust then usually in like week two after then usually in like week two after then usually in like week two after seeing the notes generate the initial seeing the notes generate the initial seeing the notes generate the initial blush of how exciting it is wears off blush of how exciting it is wears off blush of how exciting it is wears off and they're like I really wish Heidi and they're like I really wish Heidi and they're like I really wish Heidi would write like this way. It's a bit would write like this way. It's a bit would write like this way. It's a bit annoying isn't it how it writes this annoying isn't it how it writes this annoying isn't it how it writes this way. God and they just forget what it way. God and they just forget what it way. God and they just forget what it was like before and we built product was like before and we built product was like before and we built product that they could pay for to customize that they could pay for to customize that they could pay for to customize Heidi in the way they liked integrate Heidi in the way they liked integrate Heidi in the way they liked integrate their medical record invite their their medical record invite their their medical record invite their colleagues etc etc and that was what colleagues etc etc and that was what colleagues etc etc and that was what they would pay for. So classic they would pay for. So classic they would pay for. So classic productled growth strategy. The other

productled growth strategy. The other productled growth strategy. The other key thing was all of the effort we made key thing was all of the effort we made key thing was all of the effort we made in reducing friction in the onboarding in reducing friction in the onboarding in reducing friction in the onboarding helped speed up the cycle. So if someone helped speed up the cycle. So if someone helped speed up the cycle. So if someone told a colleague, they could also just told a colleague, they could also just told a colleague, they could also just sign up straight away. So there was no sign up straight away. So there was no sign up straight away. So there was no nothing that would slow down the growth nothing that would slow down the growth nothing that would slow down the growth of the product because they could just of the product because they could just of the product because they could just sign up, start using it, and it grew sign up, start using it, and it grew sign up, start using it, and it grew from there. So making it free in the end

from there. So making it free in the end from there. So making it free in the end actually was the best way for us to actually was the best way for us to actually was the best way for us to generate leads for sales. It wasn't just generate leads for sales. It wasn't just generate leads for sales. It wasn't just about giving the product away for free.