الخميس، 5 سبتمبر 2013

Freemium: The Good And The Bad

Freemium is one of the main monetization models for mobile applications. Freemium offers a basic, 'lite' version of a software product, which is free of charge; while a premium version (that has extra features, services or content) can be unlocked after a payment. It seems very attractive for both software owners and app users. Everyone is allowed to try out the free version of the application, evaluate its interface and the way it copes with the tasks it's designed for. Then interested users may pay to unlock the full version and enjoy it, well, to the full. But unfortunately, reality is not that bright. As every model, freemium can be the solution, but not in every case. Perhaps these points can help you understand, whether this model fits your own mobile application - or not.

Free apps! That's what attracts people. Freemium is a viral thing, and it offers rapid growth of your user base. It's very enticing to get a free, useful and beautiful mobile product for daily use. Free users are the ones who can bring you those who will pay. Free users are your marketing force.

Freemium can easier face competition with purely paid products.

The whole reason behind freemium is users who pay for the 'pro' version. But who is actually willing to pay for apps? It's all in our psychology. Why should we pay for apps when we'd rather look for a 'perfect' app that is free? This idea can overwhelm the reasonable choice of paying once for what we have already found and really liked; and that's a major problem of freemium.

Beta testing of your product will not be a problem with a large number of users. In addition, it's always good to be able to claim that large number. That's how you can state the fact that your app is popular.

A large user base can also be used to drive ad revenues. However, this can draw some people away from the application, since nobody likes ads. But if the perceptional value of your product is really high, people may pay that amount to get those ads away forever.

You'll have to maintain perfect technical support for free users, which is excessively costly. Otherwise a free version is a waste of time and money. It must be nearly perfect, and must work smoothly and flawlessly. The only thing on earth that must seem better, is the paid, full version. Any negative impression can lead people away from your application and permanently harm your product's reputation.

Those who have already been using your application and enjoying all the benefits, are anyway more likely to upgrade to a full version, than those who isn't even acquainted with it yet. The longer users take advantages of the product, the more likely they are to cross the payment threshold. It's often reasonable and efficient to limit volumes instead of cutting features.

If similar apps tend to use the freemium scheme, why shouldn't yours? Of course, if there is something better that you can offer, something that can make you stand out against the rival apps. If your paid features can be found free (or cheaper) in a rival app, that won't do.

It's very hard to find the perfect line between the free and the paid. The free must be good enough to attract users and give them a fully viable product. The paid must be that sweet cherry on the top of the cake to persuade users to upgrade and have it. That could be extra cloud storage, extra content, extra game levels, extra filters and effects in a photography app, and so forth.

Look through these facts and see whether freemium is a really good choice for your peculiar software product. It could be so. It could be that charging a low fee for the full-featured application is better for you. Or it could be some other alternative. But without the point of gathering a wide audience the whole freemium idea has little chance - it's not suitable for niche solutions. Innovative software products may utilize this model - it's good for introducing the product to the market. And if you choose freemium, let your users know that the full version is worth it. Ask them to share information about your app on social networks. Don't forget about asking for feedback - and possibly, offer bonuses for that.


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