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Intuitively, we know it's fairly rare for something to be provided for nothing. Therefore, it's often assumed that the business model of freemium ventures is e
by doktrin 14y ago
Intuitively, we know it's fairly rare for something to be provided for nothing. Therefore, it's often assumed that the business model of freemium ventures is either :
1) purely ad-supported (increasingly difficult, imho)
2) generating (at least some) revenue by harvesting user data
3) running at a loss with the goal of being acquired as soon as feasibly possible
2 & 3 specifically could in various contexts be viewed as sleazy. This isn't my personal indictment, but they do represent views I've heard bandied about on a semi-consistent basis.
- aytekin 14y agoWhat you are describing is the "free" services, not "freemium" services. Freemium means trialing a product based on usage as opposed to trialing it based on time. Once your usage goes over a threshold you are an active user and you start paying for the service. That's our model on JotForm and it works well for us. One of the best examples of this model is evernote. I remember they were saying something like if the users stays active on their product for n months, they will almost certainly become a premium user.