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I find it strange that this article is placing a paid model in opposition to a freemium model. Freemium is nothing more than an indefinite free trial with limit
by dools 14y ago
I find it strange that this article is placing a paid model in opposition to a freemium model. Freemium is nothing more than an indefinite free trial with limitations placed on usage. It doesn't indicate that you don't want to charge for your products.
Far and away the best execution of freemium I've ever seen is Wufoo. You get a few forms for free to start using the service and can get genuine utility from the service. By the time you hit their escalation trigger, if you're genuinely getting value from the service the cost of change far exceeds the cost of subscription. If you're not getting genuine utility from the service you'll find something else. If you never hit one of their escalation triggers then you're a negligible cost to them and since all free forms advertise Wufoo when submitted, you're doing free marketing for them, which can be offset against the cost of supplying those free forms in the first place.
It's a beautifully designed freemium model and, I think, well worth studying when you're designing your own pricing strategy because it obviously works insanely well for them!
- wensing 14y agoFreemium is nothing more than an indefinite free trial with limitations placed on usage. I disagree in the sense that freemium is also a little understood business model, chosen by many entrepreneurs by default, with little to no thought. It doesn't indicate that you don't want to charge for your products. It does indicate that you've decided to not charge for at least one of your product's benefits, which may be the only one worth paying for.