Advantages Of Freemium

This model for revenue generation is used extensively in the cloud and Amazon runs it Web Services based on it. They charge a customer for the amount of resources that they consume on a monthly basis. For instance, a customer can start a virtual machine with amazon with a particular configuration at any time. The customer has the option to upgrade his subscription to a new

The large potential audience is the most important consideration when considering a freemium revenue model. In order for a business to grow, it should attract as many people as possible. These users will later on be the ones that will pay for the services the business offers. In order to attract customers, the service that the business

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This paper will concentrate on two web sites. The fundamental difference between the two is how much one advertises, and how the other sets the viewer in the right direction. The better of the web sites, in my opinion, is the one

Some companies prefer to invest this money in a better way and pay the public for them to be those that help them promote the product so we can have more sales. Thanks to this, many times you will receive free products for you and your friends and you earn money by completing online

This model is heavily dependent on the newer generation of users flooding the pockets of mobile game publishers like King and Zynga. Total revenue, for these companies, is generated from a small number of users who become addicted to the game. According to The SWRVE Monetization Report [5], it was discovered that 1 to 5 U.S. dollar purchases made up 67 percent of total micro transactions, but only made up for 27 percent of total revenue. 50 U.S. dollar purchases made up 9 percent of total revenue, but 50 percent of total revenue came from the top 10 percent of purchases. Freemium has shown to be a successful business model, but it comes at the cost of the individuals who make it

Social media catalyzed the interactivity of the internet by allowing anyone to generate content as easily as they could view it. This encouraged people to share themselves through online profiles on social networks. Many people blown away by the possibilities online were satisfied using online services for free without thinking about how it could be free or considering what was in it for the company. It is easy to underestimate the large costs that can be associated with a large national or international website, especially one that allows users to have interactions and one that lets users upload content. However, companies offer their services for free, so to pay for data centers, servers,

What is a freemium business model? Google the term and give an example of a company. Explain how revenue is derived in this model (e.g., the two common revenue sources) for your example company.

The Great Space Race is a novel marketing ploy by the team from Dropbox. The promotional campaign is an attempt to differentiate itself from the plethora or cloud-based services that have sprung up over the years. In fact, the landscape for cloud storage has nearly tripled over the last five years . Enterprise-level organisation from small to large, as well consumers, are offered greater incentives to sign-up with services that claims to offers convenience, reliability and security. Moreover, it promotes increased productivity through sharing of files as well as greater mobility . Nevertheless, the word “free” seems to be rampant as different services try to win the business of potential customers. However, the connotation to this word is far more complex than meets the eye. Rather, the word “free” has led to an environment where consumers and enterprise alike are being duped to exchange their valuable, and often personal and patented secrets, to the lowest bidder. Moreover, this exchange of information is happening as a result of a complacent attitude from users who ignore the very dangers the technology offers, particularly cloud based technologies, can bring after being won over by a marketing ploy.

None of [the old rules of marketing] are true anymore. The Web has transformed the rules, and you must transform your marketing to make the most of the Web-enabled marketplace of ideas. — David Meerman Scott, author of The New Rules of Marketing and PR Business was good at HubSpot. Founders Brian Halligan and Dharmesh Shah were thrilled with the progress their young company had made in the two years since they began their journey to convince corporate America that the rules of marketing had changed. To be successful in the marketplace, HubSpot needed to be much more than just a software company. Its founders had to become

Between the Cyworld user classifications of an active user, a user who spends a lot of money on the site, and a user with a lot of connections, the most valuable to Cyworld is an active user. An active user is a Cyworld member that signs-in to his/her profile on a consistent basis, multiple times per week. This type of user creates the most opportunities for Cyworld to produce income in various ways. Active users are “the ones who engage more with the system, who are more likely to interact with advertising, who are more likely to spend money on virtual goods and currency” (O’Sullivan, 2011). A user who spends a lot of money on Cyworld is valuable, but their value to Cyworld is limited to only the purchase of items. If purchasing items goes out of style and becomes an infrequent occurrence, this type of user brings about little value to the website. A user with a lot of connections, or a member that has a lot of virtual relationships with other members, comes in at a close second in terms of value brought to Cyworld. This type of user brings about a higher possibility of purchasing items for their various connections, as described previously, but just because a Cyworld user has a lot of connections does not mean that he/she actively uses the website. A user with a lot of connections that never, or rarely, signs into Cyworld contributes little value to the website. High user activity levels allow Cyworld

We also found that consumers are unlikely to value a subscription if they can get 20 free articles upfront. This is a much bigger determinant of whether and how much a customer will pay for a subscription than the possibility of getting free articles through their social network or other referral means.

Many people say, "The best things in life are free." However, when we say this, we don’t particularly mean materialistic items. Nearly two years ago this saying was heard by those who may have won the lottery or whom may have been in love and feels that it is the best thing. Nevertheless, a few years ago nearly nothing was free and if it was there was always a catch to go along with it. Now that the Internet has become so popular it is difficult not to find something for free. There are numerous sites on the World Wide Web that offer free items. For example, www.zipso.com, is a site that you are able to subscribe for free offers. The site www.napster.com, is a music site which people are able

Michael Lewis (2000: pages 256-257) scoffed at the whole attempt to formalize the definition of business models when he wrote that “ “Business Model” is one of those terms of art that were central to the Internet boom: it glorifies all manner of half baked plans. All it really meant was how you planned to make money.”

Business of different sizes among all major and minor industries continue to enter Electronic Commerce. Digital marketplaces have already torn down the walls within and between companies, bringing together buyers and sellers in one interoperable community (Bezos, 1995), (Omidyar, 1995).