Advantages Of Freemium
1 INTRODUCTION
Freemium business model is the new ‘hit’ business model of the moment as it is revolutionizing today’s industries. It is helping making the world a better in a way that it allows people to access tools and services that they would never be able to afford before.
The world has gone digital and people always look for the next new free product to try and it must be the simplest service but also provide an instant value. Freemium is the business model that has been growing in popularity among businesses and obviously users/consumers due to apparent simplicity. Freemium is composed of the two terms “free” and “premium”. The word ‘freemium’ in itself was created after a discussion on Fred Wilson’s blog in 2006 where he wondered of what kind of business model allows a business “give your service away for free, possibly ad supported but maybe not, acquire a large number of customers very efficiently through word of mouth, referral networks, organic search marketing, etc., then offer premium priced value added services or an enhanced version of your service to your customer base” (Wilson, 2006). However the origins of the freemium business model come from the business model called shareware. This business model has been heavily used since the 1980s and it consists of a free time (lite) version of a product or service
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