The last few years have seen a revolution in terms of online marketing. The rise of new, disruptive technologies such as peer to peer and social media have led to a fundamental shift on how business is done. A model that emerged as a possible answer to these problems is the Freemium paradigm. In essence it relies on gathering a large following and then trying to capitalize on it with low yield methods. Its adepts claim that the high volume will make up for the relatively low profit margin.
Promising as it sounds, this model has lead to multiple business failures. However, there are success stories as well. It’s obvious that the Freemium model CAN work, but only if you know what you’re doing. [Read more…]