Do online companies take pride in having a freemium model?

Loading... Over the past decade “freemium”—a combination of “free” and “premium”—has become the dominant business model among internet start-ups and .... Although freemium companies universally have a very low marginal cost for each new user—otherwise the model wouldn't make sense—those costs aren't zero. read more

It's more of an issue of pride in their product than pride in their business model. "Freemium" means that they believe the basic features of the program are good enough to upsell to premium features. In other words, their basic product is good enough, in their eyes, to be their sales pitch. read more

There are basically two reasons to go for a freemium business model: Marketing. By definition, having a free product makes it really easy to get customers. And internet economics make this very attractive, because the marginal cost of every new free users will be very low. read more

The magic of the freemium business model is its ability to grow a business at a rapid fire pace through advocacy. Users get to experience the value of your product first-hand, then enthusiastically spread the word. Take Slack, for example. read more