Freemium: How to Make Money on Free Versions

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Free tasting is attractive. This applies not only to products. Unpaid programs or applications are no less interesting to the user. And the freemium business model is gaining momentum in the IT sector.

You can order the service from Fractus.

Freemium: what are the features of the model?
Freemium is one of many business models (the term comes from free and premium). It is based on providing the consumer with a version of the product that is free but with limited features, with the subsequent option to purchase a more advanced version – premium – for a fixed payment or subscription fee. Limitations in the free version can concern anything: storage space, tools, functions, etc.

This model has a good effect on promotion: it attracts andorra email list 24290 contact leads customers without significant investments. The conversion rate is 2-5%. But thanks to high traffic, these are very successful coefficients. The cost of the product does not include advertising costs, but the costs of distributing the free version.

Freemium: what are the features of the model?

Examples of models
The idea came from game developers and spread to services, programs, and applications.

For example, Google Drive cloud storage provides basic space for free, and you can buy additional space. Trello management system is ready to provide special features for an additional fee. YouTube offers a premium subscription for watching videos without ads.

Online cinemas have been particularly successful in using this model: they offer a small number of films for free (they are available after watching an advertisement), while the rest are by subscription.

Goals of the freemium model
Attract potential clients.
Get recommendations .
Increase recognition.
Get an estimate.
Find customers who are ready to buy an improved product.
Freemium Model Options
The basis is a free product, but monetization occurs due to:

service;
premium versions;
subscription fee;
additional features (advanced functionality, integration, plugins, tools, data storage, etc.).
How to push the user to pay
The lion's share of users use free versions. But how to lead them to purchase a paid version, license, subscription?

First, it is necessary to show not only the advantages, but also the benefits of premium offers.
Secondly, set the correct restrictions on the use of the product.
Third, find out what is valuable to the user in the product (not everyone is a free version).
How to push the user to pay

Advantages of the model
Freemium in sales primarily attracts customers and promotes the product. If the offer solves an important problem, it will be able to interest. The word-of-mouth effect works - information about the product is passed from mouth to mouth.

Flaws
There is an indicator of users who will not pay for the premium version. The load on the server space is quite high. We will have to figure out how not to provide too many advantages in the trial version, but to be able to interest the user.

Services from Fractus
Want to try a freemium business model? If you have an idea, but no experience, knowledge or tools to implement it, order development from Fractus. Our specialists will be able to bring it to life. They will start with developing a marketing strategy. As a result, you will get a carefully planned project, high-quality design, a working model that will be able to become successful. Call us, we are in touch!

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