How does freemium model work

Use elements of the Freemium business model when you can

Lesson Details:
April 30, 2020

Video Transcription: In this video, I want to introduce you to a strategy of using either the freemium business model or parts of the freemium business model and what is this business model well it's this video is brought to you by Appy Pie Academy a very popular business model online which is used very prevalently and I'm sure you use it all the time when you're a consumer of things so you get something for free either free websites free app free something and then you get up sold something else it's very common the reason it's common online is that it's free to give away digital goods articles videos it is essentially nearly free or free so companies can give it away for brick and mortar companies or service companies it's a lot harder to give something away because it caused them money to create that in a manufacturer that but in any case if you cannot use the freemium model purely which means giving something away and then charging for something else you can use parts of the pre freemium model and then upsell so the idea of the freemium the model can always stay and can be used in any kind of business because the great the thing about it is that when you give away something for free even something little but it has to be something good people can get a glimpse of the quality of what they'd be getting because otherwise consumers you don't realize this but they are shopping blind when if they have to pay for something and them don't know what they're getting you're immediately decreasing the conversion rate because they don't know what they're getting a lot of them don't buy for that reason and they don't take the first step because they have to spend money to know what they're getting so when you're able to give away a little bit of something to give them a sense of what they'll get and if they are impressed this is very important because a lot of people cut the corner here and say well I'm just gonna give away something bad no don't give away something bad or low-quality because they're gonna get a view of your business that it's low-quality give away something that actually represents your business amazingly and really insightfully and shows the quality and then people will be much more likely to want more and to buy what you're having another benefit of this is that because you're offering something for free you're going to be able to get all the traffic compared to some paid competitor and that suffocates the competitors, of course, this is harder because you can't even serve a very large number of people if you have a physical product or a brick-and-mortar business because there are just physical constraints but it is possible to increase your current customer flow by doing something free just that you have to be a lot more careful about what you do because if you do give away something that costs money you have to do it at a tiny loss so you've got to be really careful but if you can figure out what you can give away for free or extremely cheap then you can reap the benefits of this freemium model and even if people don't buy there are actual benefits from them because guess what they bring their friends they might recommend your business they might remember it so it helps with your branding over time and really that all that activity helps you in indirect ways and takes away that activity from your competitors so you see using elements from this freemium model can really help in a number of very strong ways.

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