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There's lots of information about freemium, but I have just come across some information about what one guy is calling the Cheapium Business Model, and I would like to know if you have tried or are currently using this business model? You might call it something different. I'm also interested whether you have tried it with B2B or B2C? |
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I've seen the "cheapium" model used for mobile apps, and am currently using on a B2C app that launched last week, and have a client considering it for a B2B app in the future. We've had a little pushback that "You can't charge me for the App and then charge me again for an upgrade to unlimited items" - but otherwise it's going well so far. Clearly, putting a starting price, no matter how low, on an app is a barrier to entry. There are many people who simply will not pay for an app. You have to decide whether your product needs wide exposure or (potentially) higher quality customers. Freemium, Cheapium or Full paid - there is no right answer, and you can spend weeks discussing it and still not come to a satisfactory conclusion. |
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As Nick said, none of them are THE ONE answers. You should try and test. Do some split testing advertisements where your customers hangout and advertise about freemium, cheapmium, and full see which one converts the most. Seem wierd to do split testing with your price plan? It really shouldn't because I've seen AT&T do it. On some website, I saw an advert about their internet plan being only $45/month. I scroll down, exactly below that, there is another advert about their internet plan being only $50/month! That got a few laughs out of me. Obviously, they did not intentionally put those two adverts together and it was done by their adnetwork (I think Adwords). But I think you get what I am trying to say here. |
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