If you’re wondering what the “freemium” model means, you must have encountered one business that uses it. It simply means a business that uses free services to solve problems for people, and also offers a premium service with better functions at the same certain fee.
This model has worked for a lot of businesses as it is also a great way to get your business known about something and enjoying the word of mouth marketing you’ll get when people refer others to your amazing free service which could put you in better positions for making more money with your premium offers.
Here’s how to start your business using the freemium model.
1. Get an idea that solves a problem
It should solve the problem very much that people cannot just ignore it. It may not be an original idea, you could improve on someone else’s, but create something that seems to offer better options than a lot of the other competitors.
You want to realize that it should be so incredible that your solution should be regarded as amongst the best of the best in tackling that problem.
There’s no room for second place.
2. Create your prototype
As I said earlier, you could actually improve on someone else’s, but create something. Keep coming at your idea from different angles to find just how you could make more people inclined to preferring your solution to others.
Offer your prototype to users to get feedback which is important that you don’t act while neglecting other people which your solution is there to help.
3. Give something for free
It’s not freemium if you don’t give something for free. Look for something that you wouldn’t find around, not something so common it doesn’t make you stand out.
And when you offer it for free, use that opportunity to review feedback, you’ll see a lot of ideas to help you even improve your premium products. And, this is an absolutely incredible way of making people talk about something you are offering.
4. Marketing
You cannot leave your solution unheard or your business suffers it. First, identify your target audience and start getting the word out about it. Keep marketing because no one would buy from you if they don’t even have the slightest idea that you exist.
5. Have a premium service that has multiple better uses than the free version
I cannot stress it’s importance. What people get from paying for your premium services should be well worth the cost of getting it from you. Don’t take people’s money when you aren’t offering anything way better than the free version because they would feel cheated and could affect your sales based on the reviews you get.
6. Keep Improving on your prototype
This world is constantly evolving in all aspects, be satisfied with your solution that you refuse to improve upon it and suffer the consequences.
Get people to test out both free and premium services for free, use feedback, go check out other people’s products and see what they’ve been up to. But never stop improving on your solution – it’s the lifeblood of your business.
