Freemium is a new concept made from two separate words : free, and premium.
The idea of the freemium is to offer some kind of basic service to people for free, and to wait that the good news spread from mouth to mouth.
But at the same time a "better" service can be provided which is qualified by "Premium" service, that you will cost a certain amount of money to customers. This Premium service will make them take advantage of more than the regular customers, so they may add value to their profile in comparison with the others.
The freeness of the services you will offer to your customer will eventually lead them to acknowdlege the quality of your services, and without any move from you, they will register for some non-free services themselves because they will trust into your engagement. So, the free services might be a very powerful meaning of increasing your sales.
It has been invented by Fred Wilson in 2006, who said :
"Give your service away for free, possibly ad supported but maybe not, acquire a lot of customers very efficiently through word of mouth, referral networks, organic search marketing, etc., then offer premium priced value added services or an enhanced version of your service to your customer base."
One of the most common example i have in mind is my free anti-virus, a very common and widely used, which is called "Antivir". This anti virus is a Freemium, in the way that anyone can download it and install it on as many computers he needs to. Everyday, while the computer is running, the anti virus program will try to update its virus database. While remaining free, the antivirus program will tell you by a message popup that you can buy the Premium licence of the anti virus, which will lead you to overcome the popup window and brings the protection to be more effective.
Another example is the website Dailymotion. While its use can remain totally free, this will lead the users to be able to upload video using the lowest quality available. If you will buy the Premium user licence, you will be able to use a far better quality to upload your videos. Your work will gain in quality and visibility.
The idea of the freemium is to offer some kind of basic service to people for free, and to wait that the good news spread from mouth to mouth.
But at the same time a "better" service can be provided which is qualified by "Premium" service, that you will cost a certain amount of money to customers. This Premium service will make them take advantage of more than the regular customers, so they may add value to their profile in comparison with the others.
The freeness of the services you will offer to your customer will eventually lead them to acknowdlege the quality of your services, and without any move from you, they will register for some non-free services themselves because they will trust into your engagement. So, the free services might be a very powerful meaning of increasing your sales.
It has been invented by Fred Wilson in 2006, who said :
"Give your service away for free, possibly ad supported but maybe not, acquire a lot of customers very efficiently through word of mouth, referral networks, organic search marketing, etc., then offer premium priced value added services or an enhanced version of your service to your customer base."
One of the most common example i have in mind is my free anti-virus, a very common and widely used, which is called "Antivir". This anti virus is a Freemium, in the way that anyone can download it and install it on as many computers he needs to. Everyday, while the computer is running, the anti virus program will try to update its virus database. While remaining free, the antivirus program will tell you by a message popup that you can buy the Premium licence of the anti virus, which will lead you to overcome the popup window and brings the protection to be more effective.
Another example is the website Dailymotion. While its use can remain totally free, this will lead the users to be able to upload video using the lowest quality available. If you will buy the Premium user licence, you will be able to use a far better quality to upload your videos. Your work will gain in quality and visibility.
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