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Is Freemium the Way to Go?

freemiumMany big web businesses implementing freemium – Twitter is exploring freemium; CafePress is doing freemium; and loads of other seem to join the bandwagon. Is freemium really lucrative in such a way that those big names implement it?

In contrary to e-tailing or online service sites, many sites offering free services is doing freemium as their major money making strategy. They have their reason, and the rest of us should implement freemium strategies, too.

What is freemium, anyway? Plus a Case Study

Freemium, in essence, is a strategy in which a web business offering free services while charging a premium for more perks. Let’s have a look at this freelance jobs site for example: is a freelance jobs site offering free signup for both job posters and job seekers, while offering a paid option for job posters to get their jobs featured on the site’s homepage. In the mean time, job seekers can still enjoy free services.

The power of freemium

The power of freemium lies to the fact that members can enjoy the free services – free members can “test” the free services to see whether those services are the right solution for them. When they think the services are worthwhile, they can opt for a paid membership to get more features. Let’s say the free services pitch members for the premium version – conversion is obviously better this way.

Freemium may not give significant income for the web business initially, but in the long term, freemium is the way to go. It can offer you steady flow of income, especially if you charge your members on subscription. So, yes – I recommend you to implement freemium with paid features subscription-based.

One major big plus is that the premium members in the freemium scheme will likely to be those that are less “nagging” than the free members. They pay for more features after testing the free services – there are no obvious reasons they will not like the same offered services, in my opinion.

Ivan Widjaya
Go freemium

Ivan Widjaya is a webpreneur and an owner of a site network. He actively runs, a small business tips blog, and, a cloud business blog .

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