Give it Away: Why You Should Go Freemium

Many companies are switching to a freemium business model for the tremendous sales and marketing benefits: low-costs, potentially viral adoption, and upsell starting points.

However, switching from a paid to a free product isn’t easy. Companies that sell their products from the start usually have a solid business in place and therefore, a lot to lose. Umberto Milletti writes:

“It is analogous to traditional software companies having a very difficult time shifting to SaaS because of the revenue-recognition impact to their existing model.”

But if you’ve decided to go freemium, one of the hardest aspects is differentiating your free offering from a paid offering.

What you can do is place upsell points in places where the free user can clearly see the increase in value if they turn into a paid user. Umberto uses Skype as an example: Skype allows you to freely make calls to other Skype users, but upsells you to a paid call when you want to dial physical phones.

When making this distinction, it’s important not to lose sight of or undermine the value of your free product.

For more on going freemium, check out the full story over at Mashable.

BS
Brennon Slattery
Marketing and Web Designer

Brennon is a Marketing and Web Designer at A Charitable Life. He is also a freelance writer and the author of over 600 PCWorld articles. Before A Charitable Life, he was the Project Manager, Web Designer/Developer at Pearson.
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