The word freemium is a combination of the words “free” and “premium” and is often used as a marketing strategy by early-stage startups and mature technology companies. Typically, the company offers a feature or seat limited version of a product at no cost to the user while access to advanced features, additional seats and services can be unlocked only by upgrading to the premium and full versions of the product. The objective is to “hook” the user to the free version of the product with the eventual goal of turning them into a paying subscriber.
 
The model is particularly suited to software-as-a-service (SaaS) companies, web and mobile apps as the cost of distribution can be insignificant as long as the free version of a product does not cannibalize the company’s premium products. The freemium business model is used as a marketing tactic by technology companies to grow the user base, create brand awareness, disrupt the competition, and enter price-sensitive markets.
 
A freemium offering has several advantages. In the first place, customers can try your product to some extent before they actually decide to buy it. In addition, you can uncover insights such as the product features that your users are mostly excited about. Furthermore, you can identify the market segments and the audiences which are mostly interested in your product. The freemium business model can help a company to scale up, gain traction and grow the user base without relying on a sales team or investing on marketing campaigns that require a substantial advertising investment.
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In an interview that was published on The Motley Fool in 2008, Jim Keyes, a former CEO of Blockbuster, a provider of home movie and video game rental services via a chain of retail stores, talked about the company's reluctance to invest in the digital content delivery market at the time because he did not want to risk shareholder money in a market that was a few years away from it being commercial. Mr. Keyes also thought at the time that up-and-coming companies such as Netflix and Redbox, that were operating under different business models, were not on Blockbuster's "radar screen in terms of competition."   

Netflix's initial business model was focused on the DVD rental-by-mail market, whereas Redbox specialized in DVD movie and game rentals via automated kiosks that were deployed in grocery stores, pharmacies and other places across the U.S.

The outcome of the 2016 US elections has caused mixed feelings among the citizens of the United States and the rest of the world. 

USA now has a new President-elect but which of the two presidential nominees won the war in digital marketing leading up to the elections? Here is a closer look at the digital marketing efforts of both presidential candidates.

Statistics show that any given time only 3% of potential customers are actively seeking to buy a new product or service. Vendors and service providers have to work hard to convince potential customers that their product or service is better than the competition.

But, what are some avoidable mistakes that companies make that could potentially turn customers away? Here are three examples that we recently encountered.

​Tired of your marketing efforts not producing results? If so, it is time to revisit your marketing strategy. 

​Smart marketing starts with a strong foundation and your marketing foundation depends on your company’s ability to identify the characteristics of your best customers, the people who might buy your products and services. This detailed description of your ideal buyer is referred to as a buyer persona.

Most companies have a general understanding of who they are trying to market and sell their products to. However, they are not able to describe in detail who their ideal buyers are, their purchasing behavior, challenges and motivations.
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