Plus, the app works as advertising for the brand. Google makes its money from the brands that sell through the store. Users can download and use the app for free forever with no loss of functionality. Rather than making money from users directly, an ecosystem freemium model charges third-party developers or apps.Īn example would be the Google Play Store. Mobile games are the most common example of freeware, but the model can work for other business models that rely on multiple transactions for a single user.Īnother example of this could be LinkedIn, which is functional on its own but offers a paid version for recruiters and salespeople who will benefit most from the upgrade. If the person wants to enhance their experience, they need to pay extra.

Users will download a fully functional version of a program, although it doesn’t have a full range of features. That is an example of a freeware 2.0 model. Have you ever downloaded a mobile game, only to get hit with tons of ads and prompts to upgrade to a paid version of the game? One example of this is Slack, a communications app favored by development teams. Once enough users from that company sign on, the brand appeals to the higher-ups for consideration in paying for an upgraded version that will sync all employees together. In this case, a brand offers a free version of its software to employees of a particular business. This example only works for B2B companies, but it can be pretty effective. Many companies will offer tiered pricing that enables customers to upgrade to the package that works best for them. However, they do have limited functionality and features at this level. The basic concept of a freemium package is that users have free access to it forever. Here is a rundown of the various strategies you can use when developing your model. While the concept of freemium software is simple, it can be employed in a few different ways. Download this post by entering your email below Do not worry, we do not spam.

Dropbox pricing model