“Freemium” service models have been a fad for longer than most people care to admit, one that just won’t die.
The idea is simple:
- You have a service.
- That service offers something that people need.
- That service also offers something that people want.
- Therefore, you will give them the thing they need for free and charge them outrageously for the things they want.
Most Freemium companies fail miserably at this. Their business models look something like this:
Determining the difference between a “need” and a “want” is the difference between a sustainable business and a unicorn.
Realistically, any service can be a Freemium one, if done properly.
If you are selling a product, however, you will not succeed.
Originally Posted: https://www.quora.com/What-businesses-lend-themselves-best-to-a-freemium-pricing-model-and-why
Originally Posted On: 2016-02-16