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The Man Who Sold the Web Blog | Tag Archive | value-add


Tag Archives: value-add

What is freemium? And what is the strategy and psychology behind it?

8 Sep

I came across this great article on TechCrunch earlier this week on the freemium business model.  This article discusses the business model, psychology behind, and critical aspects you should consider when you determine your own product pricing strategy.

First, the basic question.  What is the term freemium mean?

As Wikipedia so articulately put it, freemium is a business model that works by offering a product or service free of charge, while charging a premium for advanced features, functionality, or related products and services.  Sounds familiar?  Yes, a ton of web services operate under this freemium model.

In fact, most software-as-a-service offerings offer 3 or more pricing options.  The introductory option is free, while the 2nd and 3rd ‘premium’ options are offered for a fee, because they include additional value-added features.  Or, the introductory option is free for a trial period, then the fee kicks in.  In fact, BacklinksGenie uses this freemium pricing strategy. [...]

The business of digital books. Why should you be in it?

27 Mar

Before you continue, take a look at this blog post by Bob Cringely. It’s titled Parrot Secrets and tells a story of a guy making over $400,000 a year selling ebooks about parrot training.

http://www.cringely.com/2009/03/parrot-secrets/

Done?  Don’t cheat and skip ahead. :)

Now, let’s tie the brilliance of selling a digital book to our autoscale, autopilot, value-add model.  [...]


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