Your money is in the hands of the people you meet daily, both online and offline. The business legend continued, how will you get this money from them? I pondered on these words. He said value is good but business models are better. That is how entrepreneurs get money from people. 

So, it was nightfall, I was going home from my office. I stopped by to buy Suya (Nigeria roasted meat) from a Suyaman (Suya Seller). The first thing the seller did was to cut a piece of the roasted meat for me to taste. The meat was very inviting. I took it from the seller and ate it in order to test how delicious it is. Guess what happens after that, I bought more than I wanted to buy. 

While I reasoned the business application of this experience, I discovered that this is simply a freemium model. So, you can unlock value in your business after going through and digesting this article. But, how? See how. 

The Two Components of Freemium Business Model:

According to Harvard Business Review freemium model is a business model that combines free services and premium services. The Entrepreneur has explained that Freemium business model works in two ways;

1. If it’s combined with the launch of your company, because being “new” will bring some intrigue, and a free introductory version reduces barriers to entry.
2. If your product or service is established and so loved by users that they’ll pay for something before losing access to it.

So, the two components of freemium business model are;

Free Component

The business gives perfectly free services to the customers and the customers derive huge value from these services. I will explain how this works in the next section of this article.

Revenue Model

The business offers higher services to the same users that they will pay for. This is how the companies that operate on the Freemium model make money.

How Three Modern Companies Apply this Freemium Model Effectively?

We shall be considering how three leading companies in tech adopt the freemium model and these businesses are growing in the now and will continue to thrive. Here are the insights;

• Google Search Freemium.

Google is a business under Alphabet Inc. I will analyse these businesses under the free Service component and revenue models headings.

• Google Search Free Services:

Google provides the world’s information and makes it universally accessible and useful. This information can be accessed by anyone across the globe without having to pay for making a search query. You will agree with me that the information on Google is very useful to your day to day activities. The value of Google Search free service is enormous. I feel you can testify to that.

• Google Search Revenue model:

While you search for information on Google Search, they mine your data. They use this data to provide advertising services to other companies in the form of Google Ads, display adverts etc. For you to advertise your business on Google you’ve to pay to rank for relevant keywords. This is how Google makes money.

• Youtube Freemium:

YouTube is Google Search engine for virtually any form of video contents. The platform has created great value. How does its freemium model work?

• Youtube Free Services:

You can watch videos free of charge. All you may need is your smartphone or device and data subscription. Many people have become professionals and experts in different things by watching free video tutorials on Youtube. What a great value!

• Youtube Revenue Model:

Youtube revenue model is similar to that of google search. It uses the activities of users to provide advertising services to companies and individuals that need marketing. 

• Linkedin Freemium

Have you been charged since you started using the Linkedin platform for networking? Have you seen great value in a platform that is for professional connection? You see the caliber of people you’ve met, how grateful are you for that? This is how the Linkedin freemium’s free component works;

• LinkedIn Free Service:

In the book “3S Rules” Reid Hoffman has a principle which states that humans are social animals that they find fulfillment connecting with other human beings. So, on Linkedin you get access to great experts and professionals that you could network with without payment for the value. You can join great groups, write and connect with people and organizations

• LinkedIn Revenue Model:

Linkedin offers other services that are only accessible to people that subscribe to premium services. Some of the examples are; learning on Linkedin, having access to people that view your profile etc. They also advertise using your activities on the platform. This is how they make money.

Freemium model can be a business model to a certain business and can also be used as a marketing strategy by other businesses. But the goal is that users or people graduate from the free services to premium just like the Suyaman’s example or find a way to monetize their activities as Google and YouTube are doing.

What do you think about this interesting business subject? Do you plan to adopt this business model? Comment below.

Since the release of the Tesla model S in 2012 till date, the perception of electric vehicles (EV) has completely changed the world of automotive technology, and with that start ICE (internal combustion engine) vehicles are possibly the most threatened species in the extinction table. The best news from all of this is that it will keep getting better and better. 

One critical point for the adoption of EVs in Africa is a possible adoption mechanism that gives EV a fast paced adoption especially in countries with poor electric power supply. About 12 countries in Africa have the best access to the power grid, Nigerian as an example has 56 percent of the population being able to use electricity in their homes according to World Bank data. Even if this does not translate to constant power supply.

Source: moguldom

A constant question and discussion being raised on the issue of availability and supply of electricity for charging EVs has made the situation a case of a knowledge problem rather than anything else. A standard electric car (60kWh battery) takes just under 8 hours to charge from empty-to-full with a 7kW charging point, which for most users will not be the case, as we cannot assume that your mobile phone is always recharged from 0% every single day.

Source: podpoint

The current drive for net zero emissions, and a hard 2050 deadline for Europe is a significant message for other continents to adopt. EVs are and will play a significant role in reaching such milestones.

Possible EV adoption solutions (case example Nigeria)

Gas and Petrol stations: Most petrol stations are equipped to run on 24 hour power supply to keep their pumps running, and even when not pumping they must keep running power. Placing EV chargers in the vicinity of their stations will give EV owners a chance to charge their vehicles, and this model works because superchargers can charge up a vehicle in a few hours (depends on charger installed). And since many already have wide spaces for vehicle parking (usually empty) this helps them put it to good use.

 image source: silverbird tv

Shopping Malls and Event Centers: Shopping malls and event centers are also open spaces for the deployment of EV charging stations as these locations are suited to charging. In the largest states in terms of economic progress within African countries, many locations like these are great locations and can serve needs as well as providing additional revenue for parties involved especially private companies who provide this as a service.

Workplaces and Car Parking spaces. These will also be suitable locations for the deployment of charging stations as many workers leave their vehicles idle between work opening times and closing times. This period of non-use of vehicles is adequate for charging if chargers are placed in the parking spots of the companies and businesses involved.

Source: northern times

The availability of charging stations will play a role in making all these happen, and internal and external solutions can easily be resourced once demand increases to specific levels of growth. Private companies can move into the space creating multiple business models that will create a new industry, skill set and employment opportunities, through servicing and consulting firms being created. Mobile and web applications for charging station locations can generate revenue for those interested in that business model, concierge services for private charging are also primed business models.

Source: Walmart

Further to the adoption of EVs will lead to the adoption of renewable energy sources and when demand increases, chances are that prices will fall drastically across many quarters of renewable energy adoption. In recent years, solar power and renewable energy sources are being adopted in many African nations, as the abundance of sunlight and open skies for most parts of the year in most locations of the continent are gradually switching to these not so new forms of energy generation as it provides 24/7 power supplies as long as it functions and at specific scales of implementation.

The benefit for government can be far reaching as the inclusion of EVs in the economy will serve as a multiple edged sword by increasing the opportunity for private sector to assist in providing stable power supplies, increasing employment, reducing its carbon footprint and diversifying and shaping the economy to be relevant in industry 4.0.

2020 has come, and it is primed to usher a new decade and fast paced adoption of automotive innovation.