#freemium and The Internet: A Match Made in Heaven….or Hell
▻https://hackernoon.com/freemium-and-the-internet-a-match-made-in-heaven-or-hell-d80dd0e4824?sou
SourceEven though the term ‘Freemium’ got introduced into business lingo recently, the central idea behind it is not something new: give a product/service for free to the customer with the hope to influence her to buy another product. Gillette pioneered this idea in the modern industrialized world in late 19th century by giving razors for free but charging customers for disposable blades to recover the cost of razors. And, thus built a brand with a powerful moat that has survived for more than 100 years.Nowadays, you can see numerous examples of the same business model all around where a paid product is cross-subsidizing the free product: get $700 worth of phone for free by signing a $60/month cellular contract for 2 years; get a Square Card Reader for free and pay a fixed %ge on each (...)
#match-made-in-heaven #match-made-in-hell #startup #internet-freemium