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OLD DRAFT Two-sided market strategies: a complete view of platform and freemium business models

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Short overview of two-sided markets. Often referred to as "free versus paid" business models, two-sided markets power many companies based on open source, closed source, web services, telephony, gaming, and are bound to expand to new industry over the course of the century. More information at nicolaspujol.com.

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OLD DRAFT Two-sided market strategies: a complete view of platform and freemium business models

  1. 1. Two-sided market strategies Business Models © Pujol Enterprises LLC, http://nicolaspujol.com
  2. 2. Model X: cross subsidy One-sided model, but shares some dynamics with two-sided markets Product A (free) Inextricable bond Product B (paid) Immediate or deferred consumption Buyer Seller $ Payment © Pujol Enterprises LLC, http://nicolaspujol.com
  3. 3. Model 1: Platform Time & Platform service mind share fee P(B) User Platform User (A) company (B) Free good P(A) to user A-B interaction © Pujol Enterprises LLC, http://nicolaspujol.com
  4. 4. Model 2: Freemium Mind share Free good Users (A) Company Conversion rate Premium good (A+, or B) Payment for Buyers premium good © Pujol Enterprises LLC, http://nicolaspujol.com
  5. 5. Freemium differentiation alternatives FEATURE DIFFERENTIATION TIME DIFFERENTIATION RELATED (B), Beta version SAME BUYER Stable version (A) trial (A) Enthusiast version (A) CORE (A+) Stable version (A+) CORE (A) Immediate Deferred data RELATED (B), data release release (A) DIFFERENT BUYER (A+) © Pujol Enterprises LLC, http://nicolaspujol.com

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