Monday, October 25, 2010

FREE + PREMIUM=Freemium. Do Freemuim Strategy Works?

Do FREEMIUM Strategy works?

Yes it’s a debatable question, as we see lots of start ups coming up in recent times,

1.FREEMIUM is an important strategic tool for NEW Brand Building and New product perception building.

2. FREEMIUM is not at all new concept rather it is getting packaged in the new format.

3. FREEMIUM is very successful in the web business and the new cloud computing business or SaaS business models which are being generated today.

4. FREEMIUM is a short term habit formation for prospects.

5. FREEMIUM helps in relationship building.

6. FREEMIUM helps in long time relationship building.

7. FREEMIUM helps to cut down your advertisement cost and you can know your target customers accurately.

8. FREEMIUM can be used to co-create (Outside -In) a new product.

9. FREEMIUM can be considered as deferred revenue expenditure in other words active and involved advertisements.

10. FREEMIUM is an instrument for Push/Pull sale.

Again there are specific weaknesses of FREEMIUM. This particular strategy can not be used in all industry, especially in the Capital Expenditure industry.

If FREEMIUM can be properly used it can reap a handsome dividend for new start ups.

FREEMIUM is like David.

It’s like “David and the Goliath”.

Hoping to see lot of FREEMIUM strategy and very much will be used in the Change Management strategy.

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