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Judy Artunian

Guide to Freemiums

Freemiums give you a chance to upsell without a hard sell


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When Adobe Systems first offered its Acrobat software for free in the mid-1990s, it unwittingly became one of the first companies to provide a freemium. That’s the term venture capitalists now use to describe the practice of offering Web site visitors one or more free products or services in hopes of encouraging them to purchase more capabilities or content. The freemium model can be an especially effective promotional tool online because customers who like your free virus-scanning software or sports highlight videos can easily spread the word on blogs, online forums and in chat rooms. Freemiums also give start-ups a chance to prove to potential investors that there is a market for their products or services.

Three keys to making the most of your freemium offers:
  1. Offer appealing freemiums that people can’t get elsewhere.
  2. Make it easy for Web site visitors to get your freemium. Don’t make them wade through multiple pages and lengthy registration forms.
  3. Once you’ve provided certain products or features for free, keep them free. It promotes goodwill.

Action Steps
The best contacts and resources to help you get it done

Make your freemiums known


Put your freemium offerings on your home page or give visitors nudge to click on a link that will take them to your freemiums.

I recommend: Visit Web sites whose freemiums have been a hit. Hoover’s ,which provides company and industry information, isn’t shy about letting visitors search for free content from its home page. Flickr visitors learn about the site’s free photo-storage and sharing service when they click on the “Sign Up” or “Learn More!” buttons.

Offer a free trial as a freemium


Whether it’s a trial subscription to your daily blog or access to members-only content on your site, give users a free look.

I recommend: Create online forms so people can sign up on your site for your free offer. Freedback.com lets you create HTML forms in eight minutes.

Make it easy to order add-ons or premium services


Offer one-click access from your freemium page to ordering options for your add-ons and premium services. Try to avoid time-consuming downloads or plug-ins that can frustrate potential buyers.

I recommend: Check out samples of simple order forms at FormSite.com.

Give customers what they want


Survey your customers to discover what additional products or services they want or need. Based on their responses, offer those add-ons or premiums.

I recommend: FreeOnlineSurveys.com lets you create an online survey in mere minutes.

Monitor your freemium campaign


If your freemiums are available on your Web site, keep tabs on visitor traffic and interest.

I recommend: SuperStats gives you the numbers on Web site traffic and visitor behavior. MarketingPilot lets you track the metrics for multiple marketing campaigns.

Tips & Tactics
Helpful advice for making the most of this Guide

  • If you’re in the process of developing a software product or an online media site, now is the time to develop your freemium strategy. Consider which features are the best candidates for freemiums.
  • Don’t provide a freemium until you’re earning enough from your paid products or services to cover the cost of the freebies.
  • Give customers a good reason to upgrade from your freemium to your more advanced offerings.

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