Freemium works by providing a base service free, their tiers of service at a premium.
Flickr is an early example of this, use their service for free, upload a decent amount of photos a month. Premium service offers increased upload for heavy users and photo sets (as well as a nice little badge).
I’d like to see more of this in day to day life:
- Free bus rides as long as you stand. Pay a premium for seating, can even tier the seating offering a more comfortable seat.
- Do the same with trains, free to stand, pay for seating.
- Free broadband as long as you use the modified browser which earns revenue from all searches. Pay for access to unlimited Facebook & YouTube or pay for backups, file sharing mode.
Offering something for free offers a great lead in and conversation for your customers.
It also paves the way for more customers through the doors, however you do have to be smart and ensure there is the upsell, as without it you are just catering to freeloaders.
What free models would you like to see? Or have seen? Be great to hear from you…