What is Freemium Pricing Strategy
What is Freemium Pricing Strategy - infoweb24.com

What is Freemium Pricing Strategy?

What is Freemium Pricing Strategy? – When launching a product/service, be sure to set the right pricing. Depending on the market situation, product quality, and customer demand, this pricing should not be high or low. So you can use Freemium Pricing Strategy to be more sure of your pricing. In this article, we will discuss the Freemium pricing strategy, its types, and the pros and cons of this strategy.

What is Freemium Pricing Strategy?

Freemium Pricing – a combination of the words “Free” and “Premium” – is a pricing strategy that businesses use if they want to provide free customer service in addition to financial options. In general, free options are the main versions of the service, and paid options will be upgraded versions of the bonus or that product.

Although the concept of freemium has existed in the economic literature for decades, the term was formally used in 2006. With Freemium pricing, businesses offer at least two rows of services: costly and free services. The free option usually has fewer features than the paid option. Or it may be more appealing (for example, for ads with limited usage). Top options are optional, but typically offer extra features, a better experience, or both.

Freemium does not only apply to businesses that offer free and paid permanent options. It can also be applied to companies that offer free trial services. Therefore, there are several examples of Freemium pricing in practice.

More About Freemium Pricing Strategy:

What is Freemium Pricing Strategy
What is Freemium Pricing Strategy – infoweb24.com

In other words, freemium pricing is a combination of the terms reward and free product. This is a pricing strategy that offers basic services for free and advanced features for a higher price. This strategy attracts the attention of customers by providing some services for free. If customers like basic services, then they should also enjoy additional services.

Businesses and companies that provide free and paid services on a permanent basis are not subject to the Freemium label. This strategy can only be used by those businesses that limit free trial services. Some of the main examples of Freemium pricing are as follows:

  • Companies like MailChimp offer free services with limited features and options. If users want additional features, they have to pay for them.
  • Online magazines and newspapers, such as the Harvard Business Review, offer a limited number of free articles. If the user wants unlimited access, then he has to pay for it.
  • In free apps like Pandora, if the customer wants an ad-free experience, then they have to pay for it because they offer free services with ads.
  • The reason companies use the Freemium pricing method is to convince customers and attract them with a free option. They can upgrade to the paid version whenever they want.

A few more examples of Freemium Pricing Strategy

  • An ad-free app that requires customers to pay to remove that ad.
  • An online newspaper or magazine that sets limits on free articles per month and requires payment for unlimited access to customers.
  • The company offers a free service with limited features and a paid service with additional features.
  • Businesses that use Freemium pricing strategies hope to attract customers with free options and then convince them to upgrade to a paid version of the program or product.

Things to Consider Before Using a Freemium Pricing Strategy

According to a Harvard review article, most companies with the Freemium model have a conversion rate of 2.5 to 5% of free users to paying customers. To find out if this conversion rate is enough for your business, consider the following:

  • Cost of customer acquisition
  • Commercial expenses
  • Customer lifetime value

What is the cost of attracting customers?

If you have a high customer acquisition cost, a freemium pricing strategy probably will not work. Customer acquisition cost (CAC) represents the amount of money a business spends on sourcing, marketing, and purchasing each new customer. Some of the things that may enter the CAC include the salaries and advertising of marketing and sales staff.

Depending on the industry and processes, the cost of attracting a business customer can range from anything to hundreds of dollars. If your prices are high, you can spend a little more on new customers. But if your prices are low (or free), you need to keep your CAC low.

What are the commercial costs?

The cost of buying a customer includes some of the costs of your business, but not all of them. Before moving on to a freemium pricing strategy, make sure you have enough revenue from paying customers to cover your expenses. Add your business expenses, including:

  • Rent
  • salary
  • welfare Sevices
  • Insurance
  • Office Supplies
  • Equipment

Once you have calculated your costs, determine if you can settle accounts with paying customers. Most freemium-priced businesses have more free users than paying users, so be sure to consider this.

What is the customer lifetime value (CLV)?

Is Freemium Pricing Stable in Your Business? To find out, look at your customer retention value. Calculate your business CLV to get your revenue from the customer over time.

Most businesses compare customer acquisition cost (CAC) and customer lifetime value with customer acquisition cost. This shows you the relationship between the cost you spend for each customer and the amount each customer spends on your business. Take a look at your paying customers. You need some data such as how it works:

How much do they charge for your services?

Do they often pay for your services or not?

Will they continue to use your services for a long time or not?

Fortunately, your free users also have their own value in this analysis. Free users can be your brand ambassadors who help promote your company to potential customers. Needless to say, free users can become loyal customers who pay for your services/products.

Benefits of Freemium Pricing Strategy

Here are some of the key benefits of the Freemium pricing strategy:

No obstacle

As we all know, the consumer market has become competitive. Many companies, such as SaaS and applications, target customers and ask them to test their products. However, they do offer a variety of products and services, from WordPress backups to time management applications. Of course, customers also prefer products that are right for them. You can attract them by adding the word “free”. It is important to remember that the term “free” attracts the attention of customers. That’s why businesses offer freemium services when they launch their product.

The result of Freemium Pricing Strategy:

Track your revenue to see if your freemium pricing strategy works for your business. Keep in mind that if you want this strategy to be a permanent part of your business, you need to consider all aspects of caution. Do not forget the analysis and of course always improve the quality of your product.

 

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80 comments

  1. My name is Samiullah and I am from Afghanistan.I want to leave my homeland

  2. My name is Samiullah and I am from Afghanistan I want to leave my homeland

    • To the US Embassy
      I, Said Rahman son of Ali-Rahman, served in the Afgahistan National Army from 2002 to 15/8/2021 with international partners in different provinces of Afghanistan.
      In 2008, he served with the Marine Corps at the Kala Gosh base in the Nagrach district of Laghman province.
      I was now serving as a brigadier general in the senior corps at the 201st Flood Corps at E.8.
      Now that all control of Afghanistan is in the hands of the Taliban, I have been warned many times that you have done your job with foreigners and now I am under the threat of the Taliban.
      Now I want to go abroad with my family.
      I hope you will cooperate with me in this regard.

      kind regards
      Deputy Sereagnt Major 201 Flood Corps

    • My name is Abdulwali Alizai I am from Afghanistan. I graduated from Kabul medical university I want to leave my country and go abroad. The situation here is very bad. The system collapsed completely. My life is in danger here. You have to help me.A government official set up a checkpoint in our house and then the Taliban destroyed our house.Destroy my house theTalibanI every days please help me
      My WhatsApp Number 0730035006
      And my mail address [email protected]

  3. زه هم غواړم چې کاناډا هيواد ته مهاجر شم ځکه چې په افغانستان کې د طالبانو له خوا ګواښل شوی يم نو هيله لرم چې مرسته مې وکړۍ تر څو وکولاي شم کاناډا ته هيواد ورسېږم په ډيري منني سره۔

    • Mohammad Farid Afzali

      My name is Mohammad Farid Afzali I am a current resident of Kabul province. I worked in a government office.Because the situation in the country is critical, I want to continue living in the United States

      • توریالی همت

        زه هم عواړم چی دافعانستان نه چیرته بهرلاړشم ځکه داحالت ددی تقاضاء نکوی چی دلته پاتی شوه اونه به جوړشی ځکه مونږدی دولت کی دنده ترسره کړي مونږ ته معلومات کیږی

    • سلام علیکم وروره زه هم غوارم سی کاناداته ولارسم زکه سی دی دوشمن له خوا گواشل شویم ورورمی دولتی ده یو ورورمی شهید شوی ده زه پخپله دولتی یم نوزه غوارم سی مرسته راسره وکی اوکاناداته ته می بوزی
      تول کورمی په خترکی ده شمارمی دغه ده 0791485563

    • سلام ﺯه غواړم چى دافغانستان څخه انګلستان هيواد ته لاړ شم دفاميل سره څکه چى ﺯموږ هيواد کى ډيره ګډودى رامنځته شوى ده

  4. My Name is gulmohammad I am from Afghanistan leant to lleavr my homeland,

  5. Ahmadshah waziri from afghanistan helmand lashkarga province the afghanistan situation is really bad i want to leave afghaniatan hope to help me .
    whatsapp0703656586

    • My name is Abdulwali Alizai I am from Afghanistan. I want to leave my country and go abroad. The situation here is very bad. The system collapsed completely. My life is in danger here. You have to help me. A government official set up a checkpoint in our house and then the Taliban destroyed our house.I am doctor graduation from Kabul medical university …
      My WhatsApp Number
      0730035006
      [email protected]

      • سلام
        زه غواړم چې کاناډا مهاجر شم
        زه په افغانستان کې دې پکتيا ولايت يم
        زه يو رضاکار ووم
        خو دې طالبانو لې لوري ما ته ګواښ وشو
        هيله لرم چې زمونږ ليکنې ستاسو دې نظر لاندې راشي
        0799451424

  6. My Name is gulmohammad and I am from Afghanistan I want to leave my homeland,

  7. I am Ezatullah I want leave my country

  8. Hi Dear, canadian embassy in kabul
    I ‘am Azizullah student of LLB(Political seince)
    I dont want to stay here anymore due to bad and, mass stuation in Afghanistan so plz i want to leave.

    • Dear Sir,/Madem

      I am from Marawara Villege of Lar kali district of Konar Afghanistan
      My (NID) Tazkari number is( 190430 ) I was born( 01JAN 1965 ) I am currently reside in Nine 9 zone of jalalabad city and Nangarhar province, I have worked in jalalabad Airport Base OPS sanitation and Construction projects From 17-Dec-2009 to 02-Dec-2011and from 01-JUN 2012) at Base OPS sanitation and FOB Fenteny jalalabad Air Field.
      I have worked with US Force. Therefore it is difficult for me and my family to live here and our lives are threatend. We feel deathly every moment of our life. The militants have warned me that they will kill me. The militants are trying to find and kill people who have worked with US forces
      As US troops are leaving Afghanistan, it is very difficult for us to live here in Afghanistan and our lives are in danger because the militants will find and kill us.
      Therefore , I request you please process my documents through SIV process so that I can moved and settle in USA with my family

      Best Regards,

      Shah Jahan
      Show quoted text

  9. Muhammad Sadiq Amiri

    My name is Muhammad Sadiq Amiri . I am from Afghanistan. I want to leave my country and go abroad. The situation here is very bad. The system collapsed completely. My life is in danger here. You have to help me

    • Ihsanullah ibrahimi

      My name is ihsanullah ibrahimi . I am from Afghanistan. I want to leave my country and go abroad. The situation here is very bad. The system collapsed completely. My life is in danger here. You have to help me

  10. Muhammad Sadiq Amiri

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  11. My name is Zahid Akbar. I am from Afghanistan. I want to leave my country and go abroad. You have to help me.

  12. Gul mohammad shirzad

    سلام من در افغانستان در ولایت کندز فعال جامعه مدنی بودم ودر ضمن کار مند آمریت کشف های تروریستی ولایت کندز بودم کی ناګهان از طرف ګروه تروریستی به جرم فعالیت جامعه مدنی دستګیر شدم بعد از شکنجه ولتو کوب وزندانی کردن بعد از ۳۴ روز به وساطت مویسفیدان واهالی منطقه به ضمانت اینکه دیګر فعالیت جامعه مدنی را توقف نمایم وهم کشور را ترک کنم آزاد شدم چون امکانات خارج رفتن را نداشتم در کابل مستقر شدم وقتیکه ګروه تروریستی از فعالیت ام در آمریت کشف های تروریستی وهم نرفتن ام از کشور خبر شدن امر ترور بنده را صادر نمود کی فعلا در مرز با ایران به شکل پنهان با مشکلات زیاد کی هیچګونه زمینه
    کاری، تحصلی وآموزشی مهیا نیست.کی ثبوت های فوقالذکر همرایم است
    شماره تماس.0093766662696.
    [email protected]

  13. Gul mohammad shirzad

    Hi, I was a civil society activist in Kunduz province in Afghanistan, and I was also an employee of the Kunduz Terrorism Intelligence Directorate. I was suddenly arrested by a terrorist group for civil society activities. Region I was released on the guarantee that I would stop the activities of civil society and leave the country because I did not have the means to leave. I settled in Kabul when a terrorist group reported that I had been assassinated. Issued who is currently on the border with Iran in secret with many problems and no background
    Work, education and training are not available. The above-mentioned proofs are with me
    Contact number .0093766662696.
    [email protected]

  14. سلامونه زه هم غوارم دافغانستان سخه ووزم ولی چه دلته افغانستان کی د طالبانوو لخوا تهدید سوی په دا خاطر چه ما په افغان زاواکونو کی وظیفه تر سره کول نن تاسی ته معلومه ده چه وظیعت سنگه نو هلیه ده چه کومک راسره وکری او زما د واتس اف شمیره ۰۷۰۶۶۶۰۹۲۱

  15. Hello, I am in complete danger from Wardak province.
    Now my Taliban is crying
    I work with my own government, now our lives are in danger
    Mucumberpranse

  16. زه هم غواړم چې کاناډا هيواد ته مهاجر شم ځکه چې په افغانستان ولایت کنړ کې د طالبانو له خوا ګواښل شوی يم نو هيله لرم چې مرسته مې وکړۍ 0093770707355تر څو وکولاي شم کاناډا ته هيواد ورسېږم په ډيري منني سره۔

  17. Hello, my name is Mohammad Nasim Qasem from afghanistan my life is in danger here i want to leave my country with my family please help me
    My email adress: [email protected]
    Whatsapp: 00937723626

    • I am from Afghanistan .living in pakistan right now..
      Want to migrate us or canada
      If possible please contact me
      I m indanger cant tell you more
      Plz help me out ..
      Yours sincerely
      Ajab Noor
      00923079335237

  18. August 25, 2021 at 8:47am
    My name is Hassan khil Totakhil I am from Afghanistan. I want to leave my country and go abroad. The situation here is very bad. The system collapsed completely. My life is in danger here. You have to help me. My WhatsApp number +93775375305

  19. Hi I want to go out from Afghanistan we cannot live here
    [email protected]

  20. My name is Abdul Aziz Azizi. I am from Afghanistan. I want to leave my country and go abroad. You have to help me

  21. سلام وعرض ادب نجیب الله استم ازولایت غزنی قبلا وظیفه دولتی داشتم حالا ام بیکار دافغانستان قد طالبان جان مادر خطر است هم اقلیت قومی دارم هم مذهبی هم قبلا وظیفه دولتی داشتم حالاام درغزنی استم جان مادر خطر ازخانه بیرون شده نمی توانم خانه تلاشی ام جریان دارد

  22. Hello, I am Major Hamid Long. I want my whole family to be in danger of death. I am facing death threats every moment. My whole family is in the military. My father is a major general. Maiwand was the commander of the corps and then the commander of the Thunder corps. Now our life in Afghanistan is difficult

  23. My name is Khan Mohammad Tarakhel, I am a resident of Wardak Province, Afghanistan. My life is in danger. A government official set up a checkpoint in our house and then the Taliban destroyed our house.Destroy my house if TalibanI also have the full video and photos whataspp no 0093783326688/ 0093767424949/ 0093744852434

  24. My name is Khan Mohammad Tarakhel, I am a resident of Wardak Province, Afghanistan. My life is in danger. A government official set up a checkpoint in our house and then the Taliban destroyed our house.Destroy my house if TalibanI also have the full video and photos whataspp no 0093783326688/ 0093767424949/ 0093744852434
    [email protected]

    • My name is Abdulwali Alizai I am from Afghanistan. I graduated from Kabul medical university I want to leave my country and go abroad. The situation here is very bad. The system collapsed completely. My life is in danger here. You have to help me.A government official set up a checkpoint in our house and then the Taliban destroyed our house.Destroy my house theTalibanI every days please help me
      My WhatsApp Number 0730035006
      And my mail address [email protected]

  25. Iam midical student l want to leave afghanistan

  26. Sayedarif mangal

    My name is Sayed Arif I am from Afghanistan And I want to leave my Country and go abroad .you have to help me. Afghanistan bad situation my life is very Danger in Afghanistan
    [email protected]

  27. I have MBA degree i can hepl your business
    I am from Afghanistan and now i am under the dangers situations from Taliban’s government.

  28. I want to go frame Afghanistan to America

  29. I am fazlullah, and i am a student at university, law faculty, and i am single, I have been interviewed and biometric for interpretetion by your troops,especially by O.G.A company at jalalabad fob fenty station approximately seven months before, and now i dont have any thing in my hands that i could inter airport kabul, my family is so upset about me,because taliban has taken all reagions at jalalabad

  30. My name is fazlullah, from afghanistan, jalalabad province,
    i am a student at university,law faculty, and i am single, approximately seven months before, i have interviewed and biometric by your troops, especially by O.G.A company,which is located at jalalabad fob fenty station. And now I do not have any thing in my hand that i enter airport of kabul, and the situation are so bad in jalalabad, and my family is so upset about me .

  31. My name is Abdulwali Alizai I am from Afghanistan. I graduated from Kabul medical university I want to leave my country and go abroad. The situation here is very bad. The system collapsed completely. My life is in danger here. You have to help me.A government official set up a checkpoint in our house and then the Taliban destroyed our house.Destroy my house theTalibanI every days please help me
    My WhatsApp Number 0730035006
    And my mail address [email protected]

  32. Abdul khaliq Riaze

    Hello. I am Abdul Khaliq Riaz from Kandahar province of Afghanistan I am a civil activist and now my life is in danger and I want to immigrate to Canada so it will be a great favor for me

  33. زه غواړم امریکا ته لاړ شم ځکه افغانستان کی دجګړی له امله ژوند کول ستونز من ده

  34. DEAR SIR/ MADAM
    I’M NAJIBULLAH SON OF NOOR HAMID, FROM KUNAR AFGHANINSTAN THAT CURRENTLY LIVE IN JALALBAD CITY I WORK IN NANGARHAR PROVINIAL DEPARTMENT I WANRNED MANY TIMES WITH DEATH BY TALIBAN TO LEAVE MY JOB AND EVEN TERRORIST GROUPS WANTED TO WORK WITH THEIR BENEFITS AND DONE TERRORITICAL ACTIVITIES BUT I DENEYED THEIR REQUEST NOW AS YOU NOW ENTIRE AFGHANISTAN WAS SUBMITTED TO TALIBAN NOW WE ARE AT RISK AND I CAN’T LIVE SAFE HERE ANYMORE CAUSE I DENEYED THEIR REQUEST WE HIDE OUR SELVES I HAVE 6 CHILDREN AND ONE WIFE
    WE HOPE TO SAVE US AND RESCUE US FROM TALIBAN AND TAKE US OUT
    SINCERELY YOURS

  35. My name is faizalamin Aryan i am from Afghanistan now adays the situition of our country is very dangrous and i am in danger due to taliban . I want to leave my homeland if you help me i will happy and thanks from you.

  36. Khalil ullah sami

    I am khalil ullah sami. I from Afghanistan, I want to leave my homeland.

  37. سلام من میخوایم که کشوری خود را ترک کنم چون اینجا زندگی من در خطر است چندین بار از سوی طالبان مورد شکنجه قرار گرفتیم من نمیتوانم در اینجا به تحصیل خو رسیده گی کنم لطفا کمک کنید این شماره من است 0093784117827

  38. To the US Embassy
    I, am sabir ullah son of Noorzaman served in the Afgahistan National Army from 2005 to 15/8/2021 with international partners in different provinces of Afghanistan.
    In 2008, he served with the Marine Corps at the Kala Gosh base in the Nagrach district of Laghman province.
    I was now serving as a brigadier general in the senior corps at the 201st Flood Corps at E.8.
    Now that all control of Afghanistan is in the hands of the Taliban, I have been warned many times that you have done your job with foreigners and now I am under the threat of the Taliban.
    Now I want to go abroad with my family.

  39. To the US Embassy
    I am Sediqullah son of Sana Gul
    I have served in the Afghanistan National Army (ANA) for 2 years.

    From 2006 to 2013, I served as a Guard for the Women for Afghan Women, a USA NGO.
    In 2018, I served as a Guard in the National Directorate of Security (NDS).
    In July 2019, he served in the NDS SRF-J Unit (02).
    I have been working in NDS till 15/8/2021.
    The Taliban are now targeting NDS personnel.
    Our lives and property are in the threat and we have been warned many times that you have worked with National Security and NDS SRF-J Unit (02) members.
    Now I want to go abroad with my family.
    I hope you will cooperate with me in this regard.

    kind regards
    Sediqullah

  40. Iam midical student l want to leave afghanistan

  41. Shakir ullah khalili

    my nam is Shakir ullah khalili
    my father nam Asad ullah khalili
    am from Afghanistani want to leave my country and go abroad the situation here is very bad the system collapsed completely my life is in danger here you have to help me my from kunar
    my email adress [email protected]
    my whatsapp no 0775068863

  42. زه هم غواړم چې کاناډا هيواد ته مهاجر شم ځکه چې زه هنرمن یم اودموسیقی انجینر په توګه حوست ولایت کی د رڼا سټوډیو کی دنده اجراکوم په افغانستان کې د طالبانو له خوا ګواښل شوی يم نو هيله لرم چې مرسته مې وکړۍ تر څو وکولاي شم کاناډا ته هيواد
     ورسېږم په ډيري منني سره۔
    وټسف نمبر  0765849027
    Reply

  43. I want to go Canada from Afghanistan
    I am a student at 8th class so, there’s Taliban and I can’t to study
    Please help me

    • وحیدالله

      زه هم غواړم چی کانادا ته لاړشم زه خپله دطب معالجوی محصل یم دلته زما ژوندپه خطرکی ده نه شم کولی دلته ژوندوکم هیله به مووی چی همکاری وکړی

  44. زه غواړم امريکا ته لاړ شم د امنيتي مشکلاتو په خاطر

  45. سلام و عرض ادب خدمت همه شما
    فرید احمد هستم از ولایت تخار که در سال های اخیر آنجا فعالیت های مختلف در کنار دولت داشتم از جمله فعال جامعه مدنی بودم و دیگر پس از وخیم شدن شرایط امنیتی در کنار نیروهای امنیتی فعالیت های مختلف را انجام دادم تا وقتیکه تخار به شکل کلی سقوط کرد و من یک تن از اعضای خانواده خود را نیز از دست دادم بعدن مجبور به فرار به کابل شدن بخاطریکه من و خانواده ام را چندین باز تهدید به مرگ کردن و نیز یکبار برای از بین بردن من به خانه ام هجور اوردن که خوشبختانه توانستم خودم را از ساحه بکشم. حالا در ولایت کابل میباشم با خانواده ام چندین بار به میدان هوایی مراجعه کردم و با اسناد های که داشتم ولی موفق نشدم
    از شما خواهش مندیم که در عرصه خروجی من و خانواده ام به کشور امریکا و یا کانادا جهت امنیت جان من و خانواده ام مارا یاری رسانید تشکر

    شماره تماس و واتساپ 0781675840
    ایمیل ادرس [email protected]

  46. Dear Sir/Madam
    I’m Aminullah Amiri son of Nasrullah from Zabul Province one of the Social Activist of this backward society regarding the rights of human beings specially for women so I’m in a worse situation even I don’t know how to leave and move from this aria, My request from you is to provide me with any proof that can allow me to leave.
    Thank you !
    You can contact me via my Email ID and phone Number.
    Email ID: [email protected]
    Contact No: 0093707485310

  47. ﺯه غواړم چې له افغانستان څخه بهر ته لاړ شم

  48. My name is Bahadar Armani

    Hello
    My name is Bahadar Armani I am a student I want to go to America or Canada.Can you help me now?0783211023/0791389946

  49. زه هم غواړم پاتی ژوند په کانادا کی تیر کړم 0764251312

  50. Imranullah sahil

    I am Imranullah sahil, I am from Afghanistan, I want to leave my homeland becuse of satution is not good now days in afghanistan and i have worked with the usa forces.

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