Ian Betteridge’s lifestream

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Why Freemium fails: The Idiots Guide

Here's your business model:
1. Attract people who don't want to pay for movies by giving away free movies.
2. Try and charge people for something they specifically come to your site to get for free
3. Wonder what went wrong.

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Comments (3)

Jul 29, 2009
ArunMarsh said...
But you put in a couple of hurddles, say adverts or slow downloads on the freestuff, which can be easily removed - for a small monthly fee. If your service is good, bar the intentional bad bits, then ppl should be prepared to pay a little - Its what Flickr does well with the 'pro' account - I rarely pay for online services, to me MP3s mean(t) napster not itunes, and i still grudge paying for them, despite spending money on CDs - but I happily paid the $20 or whatever it is to get a pro flickr account, you also get that slightly superior feeling having pro next to your name on your account.

The problem you may have is if someone is offering a similar service for free.

Jul 29, 2009
 said...
Isn't Freemium just a 'web 2.0' way of saying 'upselling'? And upselling is a long established business practice, along with pyramid selling, prostitution and televangelism. Praise be.
Aug 10, 2009
purlem said...
Hi.. Your post got me thinking… What is more valuable for a software company (like facebook or flickr). 1,000 paying users or 100,000 non-paying users? What are your thoughts? View my blog post here: http://www.purlem.com/blog/?p=57

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