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June 5, 2012 11:22 pm GMT
Original Link: http://feeds.mashable.com/~r/Mashable/~3/vPDrWKlg9jw/
Why the Freemium Model Doesnt Work
It’s common for people to spend $5 on a vanilla latte but to agonize over paying $5 a month for a web service. That’s because a psychological barrier to paying for online services remains, and its hurting both consumers and businesses. The solution that’s emerged to address this customer behavior is the freemium business model.There are several shiny examples of successful freemium companies. With Evernotes billion-dollar valuation, more people will point to freemium as the business model to strive for. Unfortunately, companies like Evernote and Dropbox are the poster kids for VC-backed success and exceptions. In fact, there are really only three main cases… Continue reading...Original Link: http://feeds.mashable.com/~r/Mashable/~3/vPDrWKlg9jw/
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