freemium (pattern)

9 questions for your business model

Activity perspective

PARTNERS

What can partners do better than you or at a lower cost (and thus leverage your business model)?

KEY ACTIVITIES

    infrastructure development & maintenance

What are your key activities and how difficult are they to perform (by others)?

KEY RESOURCES

    "platform"

What are your key resources and how difficult are they to copy (by others)?"

Offer perspective

VALUE PROPOSITION

    free basic service
    premium service

Which one of your customers's problems are you solving and why will he work with you rather than with a competitor?

 
Client perspective

RELATIONSHIPS

    automated & mass customized

What type of relationship does your customer expect you to establish and maintain with him?

DISTRIBUTION & ACQUISITION CHANNELS

Through which means does your customer want to be reached and addressed by you?

CUSTOMERS

    large base of free users
    small base of paying users

Who are your customers? what are your customers' needs, desires and ambitions?

 

COST STRUCTURE

    fixed costs
    cost of service premium users
    cost of service free users

What is the cost structure of your business model and is it in harmony with the core idea of your business model?

Financial perspective
 

REVENUE STREAMS / PRICING

    free basic services
    paid premium services

What value are your customers really willing to pay for and how will they pay for it?

 
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Gravatar Boris Gravatar pattern

The term freemium was coined by venture capitalist Fred Wilson on his blog. It stands for business models, mainly on the Web, blending free basic services with paid premium services.

Speciality: Many free users, small part of subscriber

flickr, open source, skype, up-side down
Company: pattern
Industry:
Last Updated: 2011-07-27
Tags: bookchunk8 freemium pattern

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