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Freemium Economics Leveraging Analytics and User Segmentation to Drive Revenue
Penulis: Eric Benjamin Seufert •
Identifier: --ericbenjam-1316
The freemium business model stipulates that a product’s basic functionality be
given away for free, in an environment of very low or no marginal distribution and
production costs that provides the potential for massive scale, with advanced functionality, premium access, and other product-specific benefits available for a fee.
The freemium business model is an adaptation of a fairly common distribution and monetization scheme used in software since the 1980s: the feature-limited
software paradigm was when consumers saw most of the fundamental core components of a product released for free, with the product’s remaining functionality
(such as saving progress or printing) becoming available only upon purchase, either
in a one-time payment or through recurring subscription payments.