The Construct of Diminishing Freemium Monetization [Video]

The Construct of Diminishing Freemium Monetization [Video]

This is the video of the The Construct of Diminishing Freemium Monetization

The usual example is from agriculture where the addition of more fertilizers in a fixed land, will over time, not have material improvement in crop yield. I take that to explain the Freemium internet business and its monetization. You can add more users to downloading that software, but most times, the value obtainable from display ads does not improve the bottom-line significantly. You could have been better if you never have to make it free, focusing on subscription instead. This is the core of the Construct of Diminishing Freemium Monetization.

Yes, the more users have not translated to more revenue. Most blogs and digital systems follow this pattern, limiting the values they can create, as they never cross what I call the Freemium Break-even point, when huge value will be unlocked on Freemium business. That is the point, similar to the Break-even point in business, after which a business can succeed under Freemium model. That means, the business has enough user to do that. Facebook and Google are examples of companies that have significantly exceeded the Freemium Break-even point.


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