What Are The Benefits Of Freemium Model?

What Are The Benefits Of Freemium Model?

1 Answer

  1. Here are some benefits of the freemium model:
    1. Decrease in cost of customer acquisition: Since the basic services are free, people start availing your service actively. With word of mouth marketing new customers get hooked to your service and hence decreasing the cost of customer acquisition.
    2. Increased brand equity: With increase in the number of loyal customers. your brand equity will also increase which will be then generate profits.
    3. Edge over premium business model: Freemium model gets you edge over the premium business model in many aspects. The main edge being your network of users will start growing rapidly if they like your service and slowly users will start using the advanced features also by making micro payments.
    4. Feedback: It can help you gain feedback for improving your product.

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