Understand the essentials of the freemium model in just 50 minutes with this practical and concise book. The freemium model reflects the popular saying that “there’s no such thing as a free lunch”: in other words, nothing is free in the modern world. This business model advises companies to offer a combination of free and premium products, thereby attracting customers with the prospect of a free product and luring them into buying the paid version.
This book will provide you with a handy introduction to the concept of ‘freebies‘ in business and the different forms that free offers can take. In addition to learning how to effectively use the freemium model in the digital age, you will consider real-life case studies, find out about the tool’s shortcomings, including the danger of freeloaders, and learn about related models, such as freeware and financing from advertising.
About the freemium model
The freemium model is a business model which combines two pricing strategies: free and paid-for. The idea behind the concept is that, by attracting a large number of users with the concept of a free product, a company can build up a large base of loyal customers. These customers, having already tested the product in its free form, will therefore naturally be more inclined to buy the full version, and the company will gain customers who they may not have had they only offered a paid-for product. While it cannot be used for just any service, it shines in certain markets.
In this book, you will discover how the freemium model can help you, learn the most effective way to attract buyers, and use your results to widen your customer base. A clear explanation of the benefits and potential drawbacks of the method, a discussion of a practical case study, and an introduction to related models will give you the tools you need to tailor your approach to your situation.
This straightforward and accessible 31-page book is structured as follows:
- Introduction to the freemium model
- What kind of free?
- Between free and premium
- Types of premium
- Limitations and extensions of the freemium model
- Limitations and criticisms
- Related models and extensions
- Practical application of the freemium model
- The golden rules of freemium: success factors
- Case studies: Skype and Spotify
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