Read this Article on Freemium
http://techcrunch.com/2011/09/04/complete-guide-freemium/
Read this Article on the Different Strategies for Freemium
https://medium.com/high-alpha/8-types-of-freemium-pricing-c6cffdf8689d
Homework:
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You have an angel investment of $50,000 and you have the chance to build a product…
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You have to come up with a product that you can afford to sell for free first…
— How much does that product cost to create or distribute? —-
— Draw it and come up with an add campaign —
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1. Come up with a business model on how you are going to change the plan to a Freemium model where your client will be “hooked” and need to pay? What is the value to free users?
2. How big do you want your company to be?
3. How big is your market?
4. What is the cost to serve your free users?
5. Is there viral value to your customers? Will one customer influence the other customer?
6. At what point will you “kick in” the premium part of your service? Will this have multiple tiers of premium?
7. Create a basic budget in google spreadsheet … How much does the product cost you? How much is your overhead for running this business?
8. How many customers will place you out of business? How quickly would you need customers to upgrade to your premium models?