Is Freemium Time Over? | Online Business Models |

Robin Good: Interesting short article at GigaOM by Rag Srinivasan, highlighting the not too well known story of how "freemium" came about thanks to a number of tests that were run by MIT behavioral economists.

The article questions the freemium model strategy which hopes to extract a sufficient number of paying customers from a much larger free user base.

"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."

And I agree. But freemium can be still an effective business model as long as you do take into serious considerations the key questions posed in this article before centering your future marketing strategy on it.

Good questions being asked. 8/10

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