´The Freemium Model´ - A brief presentaton with an overview, examples, best-practice, applications & highlights for busy business owners

1. The Freemium Model
What is ´The Freemium Model´
really about … ? :
Free ´Premium´
´Freemium´
+ =
© HyperSynectics.com, 2014 URL: www.slideshare.net/highspirit/the-freemium-model-overview-highlights

2. The Freemium Model
The Freemium Model is a ... :
 Business model
 Strategy for selling & marketing services &
products
 Framework for conceptualization of products
and services
 Customer acquisition model
© HyperSynectics.com, 2014

3. The Freemium Model
The Freemium Model is NOT ... :
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 The Freemium Model is a business
model for filling your pockets … !
*** IMPORTANT - II ***
The Freemium Model is ... :
 The Freemium Model is NOT about
giving away ALL of your services for free !
*** IMPORTANT - I ***

4. Here it is … !
Model & graphics adapted from Ecademy Digital Coach School
- www.ecademydigitalschool.com &
´Free - The Future of a Radical Price´ by Chris Anderson
© HyperSynectics.com, 2014
Don´t
forget …

5. The Freemium Model
Bonus effects from using
the Freemium Model :
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 A clear product differentiation for both value, price & customer
engagement
 Customer segmentation according to Ability to Pay (ATP)
 Customer segmentation according to Willingness to Pay (WTP)
 Strategy for building relationships with your potential customers
 Strategy for increasing engagement with your existing, paying
customers
 Inherent possibilities for up-selling, cross-selling & down selling
 An inherent sales funnel as a basic element of the model

6. The Freemium Model
Pricing tables, Best Practice - Example :
© HyperSynectics.com, 2014 Pricing table retreived from: http://www.freshbooks.com/home

7. The Freemium Model
 Free Service :
- Free Business Needs
Assessment for applying
method xyz, when using
gizmo ABC.
 Low cost service :
- Quick, ´mini strategy´ for
applying method xyz,
when using gizmo ABC.
 Higher cost service :
- Full scale strategy for use
of method xyz, when
using gizmo ABC
 Higher cost service :
- Full scale strategy for use
of method xyz, when
using gizmo ABC
 High cost service :
- Training of employees in using
method xyz, when using
gizmo ABC
 Very high cost service :
- A) Training of executives ...
- B) Training of employees to
become certified in using
method xyz
Small Business SMAB
is selling Gizmo ABC - Example :
© HyperSynectics.com, 2014
From:
www.l8smartlight.com

8. The Freemium Model
The Freemium Model is
especially useful for :
 Digital-only products/services
- e.g. online training courses
 Immaterial products/services
- e.g. consulting services
 Products/services marketed via
online-marketing only
 Launch of new products/services
- both physical and immaterial
products/services
© HyperSynectics.com, 2014

9. The Freemium Model
What would be good
examples of freemium
offerings ? :
“Something which will be of real
value for your customer, but
only of marginal cost to you”
“Make the title attractive, the
content good and don’t forget to
include a Call to Action”
*) From: http://jeanniespiro.com/12-ways-to-attract-clients-with-your-no-cost-offer/
*)
© HyperSynectics.com, 2014

10. The Freemium Model
What would be good examples
of freemium offerings ?
- 12 Ideas to get you started:
1). A 2-5 page report on a relevant topic in your field
- Usually a report on hot topic
2). A checklist
3). A teleseminar of a program you once offered
4). A Video Series of “How to´s”
5). A “Top 10” Recommendations list
6). A compilation of 5 of your best blog posts
7). An audio recording/mp3 of “How to” tips
8). A workbook
9). A multi part eCourse
10). An assessment
11). A discount for one of your products
12). An mp3 or recording of you being
interviewed - send a CD to up the juicy offer
From: http://jeanniespiro.com/12-ways-to-attract-clients-with-your-no-cost-offer/
© HyperSynectics.com, 2014

11. The Freemium Model
When isn´t ´The Freemium Model´
working properly ... ?
 When your core service
isn´t good enough ...
 When you don´t have the
time/money available for
building the critical mass for
´premium´ customers
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12. The Freemium Model
When isn´t ´The
Freemium´ relevant ?
 When there is plenty
of customers/clients :-)
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Location: Shake Shack at Madison Square Park, NYC – Photo: © dann-sommer.dk, 2011

13. The Freemium Model
Why are customers happy about
´The Freemium Model´ - I ?
 It´s free & no strings attached
 The client is allowed to make a ´test run´, for free
- For products : Possibility for making a product
evaluation
- For personal services : Evaluation of ´chemistry´ &
working methods
 Opt-in for buying additional/subsequent/relevant
services/features on demand/as needed
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14. The Freemium Model
Getting something free feels very good !
 Zero is an emotional hot button !
Zero is a source of irrational excitement !
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Why are customers
happy about
´The Freemium Model´ - II ? *)
From: ´Predictably Irrational´, by Dan Ariely, 2008

15. The Freemium Model
More info :
 Books :
- ´Free – The Future of
A Radical Price´,
by Chris Anderson
 Useful Links :
-- http://www.pinterest.com/highspiritdk/business-the-freemium-model/
© HyperSynectics.com, 2014

16. The Freemium Model
 Get inspired, look at
some of the best in
their field :
Ask HyperSynectics :
- We are ready to make The Freemium Model
work for your business also :-)
 Web :
-- www.hypersynectics.com
 E-mail:
-- connect@hypersynectics.com
© HyperSynectics.com, 2014
How to make it work for your
company & your products also ?

17. The Freemium Model
Questions ?
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