´The Freemium Model´ - Overview & Highlights for Busy Business Owners

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 ... :


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


Don´t forget …

The Freemium Model

Bonus effects from using the Freemium Model :


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


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/

*)


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/


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


The Freemium Model

When isn´t ´The Freemium´ relevant ?

When there is plenty

of customers/clients :-)


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


The Freemium Model

Getting something free feels very good ! Zero is an emotional hot button !

Zero is a source of irrational excitement !


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/


http://www.pinterest.com/highspiritdk/business-the-freemium-model/







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 ?

http://www.hypersynectics.com/

The Freemium Model

Questions ?
