of Harvard Business School, · Vineet Kumar; Kumar said, freemium is attractive to companies, the reason is that it seems to be very simple "– use free services to attract users, users" addicted "by providing more value-added services revenue," the question is, what function should be is free of charge, which should be paid, these are not obviously ". He pointed out that in the free version of the provision of multi-functional, will face "nibbling users" risk, providing too little function, and can not attract enough users.
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Chargify finally decided to charge all users. Last month, Chargify paid more than 900 subscribers and made a profit. Users need to pay at least $65. Chargify co-founder and CEO Lance · Lance Walley; Wally said, "give up the freemium model is that we make business decisions ever since best."
Beijing on August 23rd news, according to foreign media reports, more and more entrepreneurial learning in the company to the file sharing service Dropbox, occupation social network LinkedIn and network telephone service companies such as Skype, allow users free access to products and services, to build a large user group. But the freemium model will take a long time to work, and it will be difficult to succeed.
freemium is not easy to succeed,
, if it doesn’t attract millions of users, freemium is pointless for any enterprise. Founder, CEO, founder, CEO of startup incubation company TechStars
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faces the problem with Chargify, which provides financial management software for small businesses. Chargify was founded in 2009 and uses freemium mode.
a few years ago, sales advertising was the most common form of digital startups to generate revenue because they thought users would not pay for the software. At present, the freemium model is gaining popularity, partly because of the great success of companies such as Dropbox, LinkedIn and Skype, which have adopted this strategy.
Chargify offers its software free of charge to businesses with fewer than 50 customers a month. If the number of business customers is more than 50, you will need to pay at least $49 per month. Most Chargify users are not paid users. Within 1 years, Chargify was on the verge of bankruptcy.
for startups, freemium is a costly trap, bring higher operating costs and a lot of people eat idly without work "freeloader.