What is the frontier between freemium and premium for internet startups ?
What is to be considered while building an free internet service and to determine when the premium can start ? Is there best practices in that field ?
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There are several possibilities:
- by setting a limited number of using a feature: e.g. free up to 1000 contacts, or up to 10 messages a day, or up to 100 searches...
- by restricting the service: e.g. automation of tasks is not free, or choice of colors is restricted in freemium...
- by making the service anonymous: e.g. freemium version adds a logo of the service when you send documents...
- by adding support: e.g. freemium version comes without any documentation, or very restricted doc and no support...
- the freemium version is useful (otherwise, the business model is not really freemium),
- the freemium version is enough for a large fraction of users (so it becomes popular),
- the freemium version is too restrictive for a specific target which is able to pay for premium (ex: corporate users).