A central part of the creating a profitable freemium model, is having the right complimentary products. As I have mentioned the main principle of freemium is:
“When the supply of one product increases, the demand for the complimentary product increases”
So when you have increased the supply of the free product by giving it away, the demand for complimentary products increases. In order to make money from giving something away, you need to be able to meet this demand.
Often it can be a challenge to find the right product portfolio. This is also true when setting up a freemium model. The following is a list possible products you can offer or things that can be part of your business model. Try to imagine how they could look for your business.
- Royalties for extended use of free material
- Membership to a community
- Subscription to a service
- Lectures, talks or concerts
- A physical book, CD or DVD
- Deluxe editions of these
- Small eBay like platforms for buying and selling
- Consultant services
- Conference calls
- Advertising
- Endorsement of products or companies
- Affiliate marketing
- Commission on sale
- Commission on referral
- Booking of professionals in your business
- Sale of insurance
- Sale of financing
- Paid inclusion
- Fees, like shipping and handling
- Merchandise
- Rental or leasing
A lot of these might not be an obvious match with your business. But try to keep an open mind and brainstorm for ways wherein all of the above might apply to your business. I am currently working on a cue card tool for brainstorming. Check back here for more information.
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