vendredi 12 juin 2009

Freemium as an economic concept - become familiar with the concept

First all of let's define what is a Freemium:

It is a recent concept which appeared on the Internet and which consists in offering basic services for free to internet users.
To get upgraded services from the Freemium, users have to pay and use a Premium version of it.

Example of Freemium: LIMEWIRE


Limewire is peer-to-peer file-sharing program which uses the BitTorrent protocol and the Gnutella network to provide an unparalleled searches and download speed to the user. The users of free Basic Limewire can search and download musics, movies, applications, documents, etc.. from other Limewire users for free. Limewire also offers a Pro version of its service (about $35 a year) which features faster downloads, technical supports and software updates, connections to more sources, and optimized search results.

How can profits be made from FREE?

Freemiums based their strategies on the free services they offer. It is a way for them to attract a large number of users and create a sort of frustration so they get interested in upgraded services and pay for them.

How can the freemiums make money from free - through the example of Second Life


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