'Freemium' Concept

2. Write short post describing the concept with a text link to your info source
http://www.wordspy.com/words/freemium.asp
http://en.wikipedia.org/wiki/Freemium_business_model

The Freemium concept is the fact that a company offers for free a basic service but charge the consumer for other special services.

3. List at least 2 online businesses utilizing 'freemium' business model

In my links there is the example of Skype. Is it free to talk with other persons worldwide but users must pay to connect to phone which are outside the skype network.

The French website http://copainsdavant.linternaute.com enables people to find people who were with them at school or in a previous company. It is free to search people and tell them a “hello” but if you want to see their photos or to let them a message you have to subscribe to a special package.

4. Post a list of 3 advantages + 3 disadvantages of 'freemium' concept.

3 Advantages:

- The basic service is free for the user and he knows that there are other possibilities for the same service but that are not free. The user has thus the choice.

-The advantage for the owner of the company is that the user often wants more so he is influenced to pay to get the special service.

-Financial transactions are very easy and fast on internet, thus users can have the special service quickly.

3 Disadvantages:

- Often the basic service is not enough for the user to make what he wants, so he feels obliged to pay to have a better service.

- All the users do not feel secure to pay online, and all the website have not secure transaction service.

- If I take the example of http://copainsdavant.linternaute.com as we are not able to talk or to let a message to former friends, people find other ways to get what they want. And according to me, I subscribe on facebook and I can talk with people for free. As a result websites like this one loose users because there are better competitors.