Using the Freemium Business Model: Try Before you Buy

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Parag Utekar
Student (MBA), India
🔥NEW Freemium - a combination of "Free" and "Premium" - has become a dominant business model amongst multiple internet start-ups and smartphone applications. The Freemium model's idea is that the users get the basic product or service for free and must pay for additional services. In other words, it is a "try before you buy" business model and experience to the users. Dropbox is one such company that has mastered this model. The company has more than 500 million registered users who use the two-gigabyte data of free storage. Once the user consumes the data, they can subscribe to a premium version of the service by giving a monthly or a yearly subscription fee. With this model in place, Dropbox generated roughly $ 1 Billion in revenues in 2017 from its 11 million paying individuals and business users and continues to grow its user base. Multiple factors contribute to the Freemium strategy's success. The company can attract a user base without spending on marketing campaigns or the trad (...) Read more? Sign up for free


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Lecturer, India

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