When Freemium Fails – WSJ.com

A growing number of new businesses are following in the footsteps of successful companies such as Dropbox Inc., LinkedIn Corp., LNKD -0.54% and Skype Inc., SPU +3.36% by giving away their products and services free to build a customer base. A growing number of new businesses are giving away their products and services for free to try and build a customer base. But this freemium strategy often takes a long time to work, and can be tough to pull off. We look at some failures with Sarah Needleman.Yet for some, the “freemium” strategy is turning out to be a costly trap, leaving them with higher operating costs and thousands of freeloaders.Thats what happened to Chargify LLC, a provider of billing-management software to small businesses, which used the freemium business model when it started out in 2009.

via When Freemium Fails – WSJ.com.

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About Bob Warfield

Here's my bio: http://www.smoothspan.com/management.html
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