Freemium is a Money Burning Business Model, Cheapium is Better.I want to talk about freemium for a moment. The freemium business model, for those not familiar, works by offering basic features for free while charging a premium for access to advanced features. It creates a low barrier to entry, offering free sign ups, so that users have no reason to not create an account. The logic is that some of those non-paying users will eventually want the advanced features and pay up. Skype, GitHub, and Flickr employ the freemium model.
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