When the Evernote Market first launched with physical goods such as the Evernote ScanSnap scanner and Jot Script Stylus a lot of folks were doubtful if the company could add the sales of physical goods to its portfolio of digital goods and services. At LeWeb Paris, the numbers presented by Evernote CEO Phil Libin prove that such concerns were unnecessary.
The company initially took a good 16 months in order to reach its first $1 million in sales, but the Evernote Market reached that in just one month. The best sellers in the Evernote Market are currently the designer backpacks, Evernote ScanSnap scanner, and the Jot Script stylus, combining to contribute about 30% of the Evernote Market sales. The Evernote Market itself is responsible for 30% of Evernote’s monthly sales. To give some perspective of the numbers here, before the Evernote Market was launched, Evernote Premium and Evernote Business accounted for 89%and 11% of sales respectively, and they currently contribute to 61% and 9% of sales respectively.
Not bad indeed.
The idea here, he said, is that these different businesses are mutually reenforcing. Indeed, 11% of Market users are not actually Evernote users yet. Users simply refer their friends to the market so they, too, can buy an Evernote backpack. It’s also worth noting that 51% of Market sales for Evernote come from its free users (which make up the vast majority of its users). While the company’s investors often told Libin that having lots of users who used the free service for users without upgrading to the paid version, he believes that the Market now validates this model because these free users are now becoming some the company’s most valuable customers.