Question: What do you call this business model:
Give your service away for free, possibly ad supported but maybe not, acquire a lot of customers very efficiently through word of mouth, referral networks, organic search marketing, etc, then offer premium priced value added services or an enhanced version of your service to your customer base.
Reminds me of Google
"Freemium" I like it. I've been considering a service model exactly like this for the fire dispatch service offering I've been working on.
Reminds me of openBC...
Reminds me of a zintillion other "dot two" companies ...
Why not call it "Business Model 2.0"?
(However, Freemium isn't bad at all.)
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