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´The Freemium Model´ - A brief presentaton with an overview, examples, best-practice, applications & highlights for busy business owners
Citation preview
The Freemium Model What is ´The Freemium Model´
really about … ? :
Free ´Premium´
´Freemium´
+
=
© HyperSynectics.com, 2014 URL: www.slideshare.net/highspirit/the-freemium-model-overview-highlights
The Freemium Model
The Freemium Model is a ... :
Business model
Strategy for selling & marketing services & products
Framework for conceptualization of products and services
Customer acquisition model
© HyperSynectics.com, 2014
The Freemium Model
The Freemium Model is NOT ... :
© HyperSynectics.com, 2014
The Freemium Model is a business model for filling your pockets … !
*** IMPORTANT - II ***
The Freemium Model is ... :
The Freemium Model is NOT about
giving away ALL of your services for free ! *** IMPORTANT - I ***
Here it is … !
Model & graphics adapted from Ecademy Digital Coach School
- www.ecademydigitalschool.com &
´Free - The Future of a Radical Price´ by Chris Anderson
© HyperSynectics.com, 2014
Don´t forget …
The Freemium Model
Bonus effects from using the Freemium Model :
© HyperSynectics.com, 2014
A clear product differentiation for both value, price & customer engagement
Customer segmentation according to Ability to Pay (ATP) Customer segmentation according to Willingness to Pay (WTP)
Strategy for building relationships with your potential customers
Strategy for increasing engagement with your existing, paying customers
Inherent possibilities for up-selling, cross-selling & down selling
An inherent sales funnel as a basic element of the model
The Freemium Model Pricing tables, Best Practice - Example :
© HyperSynectics.com, 2014 Pricing table retreived from: http://www.freshbooks.com/home
The Freemium Model
Free Service : - Free Business Needs Assessment for applying method xyz, when using gizmo ABC.
Low cost service : - Quick, ´mini strategy´ for applying method xyz, when using gizmo ABC.
Higher cost service : - Full scale strategy for use of method xyz, when using gizmo ABC
Higher cost service : - Full scale strategy for use of method xyz, when using gizmo ABC
High cost service :
- Training of employees in using
method xyz, when using
gizmo ABC
Very high cost service :
- A) Training of executives ...
- B) Training of employees to
become certified in using
method xyz
Small Business SMAB is selling Gizmo ABC - Example :
© HyperSynectics.com, 2014 From:
www.l8smartlight.com
The Freemium Model
The Freemium Model is especially useful for :
Digital-only products/services - e.g. online training courses
Immaterial products/services - e.g. consulting services
Products/services marketed via online-marketing only Launch of new products/services - both physical and immaterial products/services
© HyperSynectics.com, 2014
The Freemium Model
What would be good examples of freemium
offerings ? : “Something which will be of real
value for your customer, but only of marginal cost to you”
“Make the title attractive, the content good and don’t forget to
include a Call to Action”
*) From: http://jeanniespiro.com/12-ways-to-attract-clients-with-your-no-cost-offer/
*)
© HyperSynectics.com, 2014
The Freemium Model
What would be good examples of freemium offerings ?
- 12 Ideas to get you started:
1). A 2-5 page report on a relevant topic in your field - Usually a report on hot topic 2). A checklist 3). A teleseminar of a program you once offered 4). A Video Series of “How to´s” 5). A “Top 10” Recommendations list 6). A compilation of 5 of your best blog posts 7). An audio recording/mp3 of “How to” tips 8). A workbook 9). A multi part eCourse 10). An assessment 11). A discount for one of your products 12). An mp3 or recording of you being interviewed - send a CD to up the juicy offer
From: http://jeanniespiro.com/12-ways-to-attract-clients-with-your-no-cost-offer/
© HyperSynectics.com, 2014
The Freemium Model
When isn´t ´The Freemium Model´ working properly ... ?
When your core service isn´t good enough ...
When you don´t have the time/money available for building the critical mass for ´premium´ customers
© HyperSynectics.com, 2014
The Freemium Model
When isn´t ´The Freemium´ relevant ?
When there is plenty
of customers/clients :-)
© HyperSynectics.com, 2014
Location: Shake Shack at Madison Square Park, NYC – Photo: © dann-sommer.dk, 2011
The Freemium Model
Why are customers happy about ´The Freemium Model´ - I ?
It´s free & no strings attached
The client is allowed to make a ´test run´, for free - For products : Possibility for making a product evaluation - For personal services : Evaluation of ´chemistry´ & working methods
Opt-in for buying additional/subsequent/relevant services/features on demand/as needed
© HyperSynectics.com, 2014
The Freemium Model
Getting something free feels very good ! Zero is an emotional hot button !
Zero is a source of irrational excitement !
© HyperSynectics.com, 2014
Why are customers happy about
´The Freemium Model´ - II ? *)
From: ´Predictably Irrational´, by Dan Ariely, 2008
The Freemium Model
More info :
Books : - ´Free – The Future of A Radical Price´, by Chris Anderson
Useful Links :
-- http://www.pinterest.com/highspiritdk/business-the-freemium-model/
© HyperSynectics.com, 2014
The Freemium Model
Get inspired, look at some of the best in their field :
Ask HyperSynectics : - We are ready to make The Freemium Model work for your business also :-)
Web : -- www.hypersynectics.com E-mail: -- [email protected] © HyperSynectics.com, 2014
How to make it work for your company & your products also ?
The Freemium Model
Questions ?
© HyperSynectics.com, 2014