Phil Libin, Evernote
There are other business models that include a free product, but they are not based on the core concept of freemium. Neither the ad-financed model (link) nor the “premium with a free trial” model can be defined as freemium.
Free computer-to-computer video or audio calls; to be able to call mobile phones and landlines as well as to have video calls with two people and more.
Platform that connects people, companies and recruiters; free to publish profile and connect to people, paid services to contact and write messages to new people or to use profile pages as a company in a more professional way; combines freemium and multi-sided platform patterns.
Free storage and sharing of data; additional storage space available for a monthly fee.
Free music streaming service; for a monthly fee it is possible to listen off-line and ad-free.
Free newsletter service; monthly fee if you want to send a larger number of newsletters or if you want to send your newsletter to more than 2,000 subscribers; MailChimp changed their business from premium to freemium and had a huge increase in users.
- Customer acquisition: It is easy to attract users when giving away a basic service for free
- Marketing effect: people are likely to spread the word about free services (word of mouth)
- Networking effect: the more people use the service, the likelier it is that they attract other users
- Large number of free users but not of paying customers: there are investments and costs involved in providing the free service, but you do not earn any money to finance it.
- Book: Free – Chris Anderson
- Online resource with information and more than 60 cases: freemium.org
- Chris Anderson’s Blog: Revised: the *four* kinds of FREE
- HBR (Harvard Business Review): Making “Freemium” Work
- Entrepreneur: Freemium: Is the Price Right for your Company?
- The Wall Street Journal: When freemium fails