9. FREEis a tactic; Profitability is the goal
Subscription
A la carte services
Sources of Revenue
Ancillary products
Partnership streams
Aggregated analytics
Advertising
10. CASE STUDY: Market Research Tools
Market Research Tools
Primary Customer?
Market researchers
Secondary Customer?
Consumers
Free or Freemium?
Freemium offering for individual marketers
Benefits of Free?
Virality, Conversion, Awareness
Limitations of Free?
Features, Reach,
Revenue Streams?
Subscription, a la carte
AdditionalLearnings?
Need to understand early how free fits model
11. CASE STUDY: Video and voice services
Video and voice services
Primary Customer
Consumer and business users
Secondary
Customer
Managers
Free or Freemium?
Freemium as primary service offering; Free trial for admin
Benefits of Free?
Networked effect; Awareness, Trial
Limitations of Free?
No administrative services, must be online, no forwarding
Revenue Streams
Subscription, a la carte, credits,
Additional Learnings
Consumers and business users are the same people
12. CASE STUDY: Restaurant reservation system
Video and voice services
Primary Customer
Restaurants
Secondary
Customer
Diners
Free or Freemium?
Beemium
Benefits of Free?
Networked effect (on both sides)
Limitations of Free?
Free offering is ancillary
Revenue Streams
Subscription, product, services
Additional Learnings Careful planning may create new sources of value
13. CASE STUDY: Digital News
Digital content creation services
Primary Customer
Newspaper readers
Secondary
Customer
Publishers
Free or Freemium?
Freemium, Free Trial
Benefits of Free?
Networked effect, awareness, trial, virality
Limitations of Free?
Volume of free, duration, depth
Revenue Streams
Subscription, platform, issues
Additional Learnings Challenges when variable costs are not zero