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The “freemium” business model is one that works quite well.
What is freemium you ask? It’s the concept between FREE and PREMIUM, yet it can be molded into a unique business model in many different ways.
One example of a successful freemium business model is all of the iPhone apps out there that are free. Think about Angry Birds… would it be as successful as it is today if there wasn’t a free version out there for everyone to play?
Yet at the same time these apps are still generating millions of dollars for their parent companies. The app is free but they are still making money by placing paid advertising through the app, or if they allow users to take action and sign up to different offers in order to get free credits or bonuses. The user gets a few free credits, and the app maker is compensated with a commission on each referred lead through their app. Continue reading




