Freemium and Low Income

Freemium is to get the foot in the door. Most of the battle of sales is to get the customer to look at your product. In app purchasing is the future, what with all the developers and open source software these days. I use open source and freemium for the vast majority of my computer use outside gaming. Much of my gaming is also freemium, and my Evernote alternates between freemium and premium, depending on how much note taking I do. However, if I would have had to pay for Evernote right off the bat, they would never have made $5 a month regularly from me at all, since I never would have tried their product at all. The best part of freemium as a consumer is that I can still use some of the functionality of the software even if I don’t have the money to pay for the premium services. This is a very good alternative for someone on a tight budget, who cannot always afford to pay a yearly subscription, or for that matter a large monthly subscription.

Gigaom

  • “We are now seeing the end of the freemium model — signing up users for free and trying to upsell,” said Christian Vanek, CEO of the Boulder-based SurveyGizmo, in a recent phone conversation.
  • “6.5 million unique users is not all that it’s cracked up to be. I don’t want hits. I want revenue. I want a real business,” said Matt Wensing, founder and CEO of Stormpulse, in an interview with Mixergy.
  • “Make a product people want to pay for,” said Marco Arment, founder of Instapaper, in a Planet Money interview.

Three easily available examples do not make indisputable evidence against freemium. Just like Dropbox, Evernote and RememberTheMilk do not make a case for freemium. But these three quotes reflect a return to the roots of marketing — starting with customer needs, choosing the needs you want to serve and getting your fair share…

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