Freemium Business Model

Freemium Business Model

Generating business model for the Web is through advertising, but with advertising payouts being smaller than they once were, freemium has come along as a solid alternative.

Freemium business model is good:

1. Giving your product away for free indefinitely will give users time to think about upgrading
2. Viral benefit
3. Network benefit more people you have using the product/service the more added value

The clients may be perfectly satisfied with free plan for a period, or years, until a day they find themselves for the additional space or features.

Viral Benefit from a person using your free service can be substantial. They may not be interested in upgrading, but the friends they tell about your service may be. And this will increase the network of your product/service you provide

Network Benefit of giving users extra time to decide and viral benefits are the most directly visible perks of freemium.