Freemium : Free + Premium
Our Freemium concept is
contrasted by giving a customer one (or 10%) free item in order to sell
ninety-nine (or 90%) other items. Freemium will offer customers 90-99% of the
basic items free, and sell 1-10% of the premium items.
The old
principle used in marketing to attract customers to your place is by offering
free items with the intent that the customers will be interested in the
company's other products. However, by using the 'Ventures Model', we are
able break down the service into features; thus, we give the company's basic
features for free in order to keep the customer with our business, and sale a
fraction of the best features in order to make money.
The idea
behind the term premium is that if you want to make life more
convenient...then you pay a premium.
One example of this is
subscribing to a free online game, which is about simulating your days at
school, which includes you being involved in love stories and gossip. One part
of the game involves you catching a bus so that you can meet a friend at school.
One problem, though, is that it is quite boring to have to wait for the bus and
travel to school. But if you pay a premium, then you will be given the power to
tele-transport to the school instantly. In short , even though you have free
access to the online game, paying for a premium feature allows the game
experience to be easier, faster, and more powerful.