Finally had a chance to really read through this article and the attached MIT document and thought I'd share.
Getting 90% of the market share but not making any money is not a win.
"Free brought us recreational users who tried us for superficial reasons, while those who found real value were the enterprise customers.”
If you've already developed a large 'customer' base from a Freemium model - answer to the enterprise customers needs to really grow your product(s) in the right direction - and your business. If people are willing to pay, chances are you're filling a need & you will attract more paying customers.
Thanks for sharing!
Reshared post from +Panah Rad
Has the Freemium business model run its course?
"Product innovation does not mean business model innovation. If your product adds compelling value to customers, charging for it is simply getting your fair share of the value created. You do not have to be ashamed of making a profit."
Very interesting thoughts.
Freemium has run its course
Freemium can only offer the hope that customers will fall in love with your product and be willing to pay for it later. This is a scattershot approach to monetization. Rags Srinivasan argues that it’s...