Free + Premium = Freemium Model, What is it??
Today we will be talking about the freemium model, what exactly it is, what does it actually represents and indicates and how does it help a business?
Basically, freemium model is made up of two words and that is Free and Premium. When a business provides some kind of additional benefits or services with some kind of product and it is used by businesses mainly to attract their customers, so that they could at least make a purchase for their product and to get that premium one as free.
Nowadays many companies are making use of this freemium business model and some of them are very much familiar to us like; LinkedIn, dropbox, spotify, Skype etc.
There are so many benefits of implementing freemium business model in business, like as we have already discusses as it attracts the customers to make a purchase which ultimately helps a business to grow their sales and presence in the market, and also it also helps a business to save their costs in terms of other promotional strategies.
This is especially been offered by the software and IT companies, where they provide their software for free to use in the beginning say, for a month and then after they start their fee and charges. Customers take advantage of such opportunity because they are getting it for free so this is the better chance for them to test the software whether it is good or not, whether they are able to use it or not, whether it is complex or easy to use and all these things are very important for a software companies too.
Also as we all know that people really love the principle of free, and that is why they are ready to use such software as well, because it costs nothing.
Also, the best thing about it is that when a company provide such software for free then they get an option to cancel their plan which will be charge whenever their free time will get complete. So it is a kind of ease which is being provided by the companies to use any software, which may prove to be useful.
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