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I think you're wrong on a couple counts. Freemium does work in the medium term if you can generate enough value in your networks and data as an asset to grow y
by acjohnson55 13y ago
I think you're wrong on a couple counts.
Freemium does work in the medium term if you can generate enough value in your networks and data as an asset to grow your valuation. You obviously do eventually need to stop recapitalizing and monetize at some point. I would argue that a lot of companies should do this a much earlier point in time, rather than growing without reasonable bounds.
A counterexample to you last point is being a startup founder. For these folks, until you prove your concept to investors and/or go cashflow positive, your salary is completely dependent on profit.
- ksk 13y agoFreemium model is setup so that it drives unsucessful companies to abuse their users for more data or in the case of microtransactions it leads to them employing psychological tricks to get the "whales" to spend more and more while the long tail continues to enjoy the service for free.. A startup founder is the owner (part or full) and is not a regular salaried employee. Hardly a counterexample...
- acjohnson55 13y agoI agree with the first problem with the freemium model, but not really the second. You don't necessarily need to rely on psychological tricks if you can provide premium services of actual value.