Startup Funding Espresso -- Freemium Pricing
Freemium Pricing Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The freemium pricing model is used to expedite customer adoption of the product. Many companies use this as part of a tiered pricing model. The freemium model gives users some experience with the product. These are the advantages of a freemium model: It\u2019s easy to implement as the price is zero for a period of time or usage. Customer usage shows the company which ones to pursue for upgrades and paid services. Freemium models can generate virality. There are disadvantages to the freemium model, as follows: There is a cost to supporting free users including support and technical costs. Customers often don\u2019t value what they don\u2019t pay for. It can be difficult to move customers off the free service into the paid service. To use the freemium model effectively you must have a set of features that customers will pay for. If you give those compelling features away for free, then it will be hard to upsell them to paid customers. \xa0 Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let\u2019s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0\xa0 For Feedback please contact info@tencapital.group\xa0\xa0\xa0 Please , share, and leave a review. Music courtesy of .