Name that business model

by Cem Basman

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.

Answer: Freemium.

Smart.

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Comments

Reminds me of Google

Ralf Stellmacher, 2006-03-28 16:40

"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.

Andrew Pollack, 2006-03-28 17:51

Reminds me of openBC...

Matthias Lorz, 2006-03-29 11:34

Reminds me of a zintillion other "dot two" companies ...

Cem Basman, 2006-03-29 13:33

Why not call it "Business Model 2.0"?
(However, Freemium isn't bad at all.)

Lukas Rosenstock, 2006-03-30 11:40

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vowe.net is a personal website published by Volker Weber a.k.a. vowe. I am an author, consultant and systems architect based in Darmstadt, Germany.

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