Exploring the Freemium Concept

Abstract

The freemium pricing strategy and concept is interpreted as a malleable though structure. As a customer, this can have a specific increasing interest in the concluding product. Moreover, the interpretation of this model can influence the client’s buying decisions. This short research emphasizes the benefits of the “free” idea, which is not entirely visioned as a marketing promotion tool anymore. 

Keywords:  freemium business model; freemium definition; freemium pricing strategy; freemium accounts; freemium revenue accounts

Introduction 

The phrase “buy one, get one free” can probably have different variables, as the world of premium users enjoy a lot of entrance to a diversity of goods and features. Still, the drawback is represented by payment to pursue the same level of degree. The model gives consumers the chance to experience and be in continuous engagement with the products without being subject to sales or marketing strategies. 

Things in Life are Free? 

The Freemium business model’s limitations explain a certain level of restriction on particular aspects of a product. Complementary, not everything free, can be necessary affordable or approachable.  

It has some fundamental feature limitations for free-tier users, including not superior functionality or paid upgrades that consumers are mainly using. Understanding the mechanism requires a comprehensive apprehension and knowledge of consumer needs and the value gained from the product. The specialized literature calls this a friction effect. It represents a limitation of using some particular goods, peculiarly for free-tier clients. 

How to be Successful with Freemium? 

The rationality in terms of economics, the Freemium business model is centered on the availability of a product extends, and the interest for its interdependent brands also increases. The solution consists of detecting auxiliary distribution channels to develop the point of contact with customers. The amplitude of social media reflects as a key in the product’s promotion. 

Spotify and Apple Music, free music-streaming platforms, sustain different characteristics on a premium subscription ground. 

The Freemium Revenue Model 

Skype and Flickr are already leaders in putting a premium offer on a pedestal. The most basic service level of a product is free for all under the freemium revenue model. In contrast, more advanced service levels enable consumers to pay tiered subscription rates based on usage extent.  There is a common practice of revenue model among Web 2.0 service companies as a materializing system of simultaneously gaining market infiltration and generating revenue. 

Conclusion 

Freemium provides the opportunity to improve the additional possibilities of the product and then encourage the rapid growth of the company while at the same time keeping the associated costs to a minimum. What the company has to do is focus on the client’s needs. 

Well, if an opportunity does not knock, then build a door!