How to Make Money in a Freemium World
One reason many startups are wary of adopting the freemium business model is the worry that when everything is free, how are you supposed to make money?
The secret is Revenue Model Innovation.
Fast Company‘s Adrian Ott chatted with Saul Berman, the author of Not for Free: Revenue Strategies for a New World. Here’s a glimpse at what it takes to innovate your company’s sales strategies.
“Revenue Model Innovation … is about applying new and different approaches to making money from the same product or service, rooted in a deep understanding of customer behavior and where customers’ perceive value.”
Saul says that Revenue Model Innovation is easier than both Industry and Enterprise innovation because it’s not a complete overhaul—it’s about “dealing with new uses for existing assets.”
So when looking at it from the freemium perspective, think about taking your existing product or service and generating new revenue with…
- Different pricing
- Different packaging (bundling or unbundling)
- Different payers (advertising and sponsorship)
To learn about the relationship between revenue model innovation and customer behavioral segmentation and much more, check out the full story over at Fast Company. You may just transform your entire company!