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Gratuitous Business Infographics

Clean the Sky - Positive Eco Trends & Breakthroughs

'The Price of Free' Chart Examines the Freemium Economy

— May 17, 2012 — Art & Design
The Mavenlink 'The Price of Free' infographic expands upon the marketing phenomenon known as 'freemium.' The freemium term is a combination of the words 'free' and 'premium,' representing the concepts admission of gratuitous products and services with the option for paid upgrades. Businesses such as LinkedIn, Google Apps and Skype have opted for the freemium model, and this chart reveals why.

The statistics gathered here reveal that free ventures like the Angry Birds smartphone application actually make more money than games that charge consumers. While this may come off as puzzling, this graph explains that a greater amount of users consistently opt for free tools. Once these users become familiar with a particular framework, they may eventually make an investment, allowing them full access to add-ons, support and storage features. Essentially, a greater number of clients are enticed by the complimentary aspect, resulting in a greater number of purchases.
Trend Themes
1. Freemium Economy - Expanding upon the concept of 'freemium,' businesses can capitalize on the strategy of offering free products or services with paid upgrades to attract a larger user base.
2. Monetizing Free Ventures - The data shows that businesses can generate more revenue by offering free products or services and monetizing through add-ons, support, and storage features once users are familiar with the framework.
3. User Preferences for Free Tools - The trend reveals that a significant number of users are more likely to choose free tools, making it an opportunity for businesses to offer free options to attract a larger customer base.
Industry Implications
1. Mobile Applications - The freemium model presents an opportunity for mobile application developers to offer free versions of their apps with in-app purchases or premium upgrades to maximize revenue.
2. Software-as-a-service (saas) - SaaS providers can adopt a freemium model to entice more users to try their software and convert them into paying subscribers for additional features and support.
3. Online Communication Services - Businesses in the online communication industry can benefit from the freemium model by offering basic services for free and then charging for advanced functionality like group calls, file storage, and other premium features.
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