Had a chat this afternoon with Podcasting’s True Gentleman – Michael W. Geoghegan. He introduced me to the Freemium meme. Now the head won’t stop spinning.
In short, Freemium is the following:
Give your service away for free, possibly ad supported but maybe not, acquire a lot of customers very efficiently through word of mouth, referral networks, organic search marketing, etc, then offer premium priced value added services or an enhanced version of your service to your customer base.
The term comes from Fred Wilson’s Blog and it is a solid explanation, whether the model makes sense or not, of the “Web 2.0 Business Model.”
Basically, everyone is doing it, and since everyone is doing it, it is quickly becoming expected of everyone.
It makes me think of the Bubble 1.0 Magazine Article that summed it up so well about 10 years ago … “Do Profits Matter Any More?”
Yes, they do matter … And they still do … even in a Web 2.0 World.
I still don’t know what I think of the concept – and I would love your thoughts/input on this one.
Of course, I did register the term FremiumPodcasting.com.
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