2. Definition: Freemium is a business model by which a product or service (mostly a web-based offering such as software, media, games or web services) is provided free of charge, but a premium is charged for advanced features, functionality, or virtual goods.

3.  How can you systematically offer something for free and still generate income?  How can you keep it for free?

4. 1. Multi-sided platforms. 2. Freemium: Get the basic for free, pay for more. 3. The insurance model: Freemium upside down.

5. Free based on advertising is a specific way of the multi-sided platform.  One side of the platform is designed to attract users to download content, product or services for free.  Another side of the platform is designed to generate revenue by selling a place on the platform to investors.

6.  Freemium is mostly a web-based offering provided free of charge,  A Premium is charged for advanced features, functionality, or virtual goods.  The word "Freemium" is combining the two aspects of the business model: "free" and "premium".

7.  The Freemium model is recognized by a large user base benefiting from a free offer  A small part of this group subscribe to the paid premium services. This Group finances the cost of the total target.  This is possible because the low cost of serving additional free users. The key factors Freemium model: the average cost of serving a free user the rates at which free users convert to premium customers where they have to pay.

8.  The developed software allows you to call for free on computers and smartphones.  Free phone calls are completely controlled by the internet, based on a peer-to-peer technology.  This technology makes use of users hardware and internet as communication infrastructure.  Skype does therefore not have to manage as a telecom network and it makes minimal costs to support additional users.

9.  Free users got the opportunity to call for free to registered Skype users  Premium users got the opportunity to call very cheap by SkypeOut.

10.  400 million registered Skype users  90% free users  100 billion free calls  A revenue of $550 million!!

11.  Open scource freemium model  Insurance model

12.  Open source is a good way to develop software  Best known product “Word press” ◦ Word press is a CMS system for blogs and websites ◦ Word press is developed by volunteers  Word press extensions for sale ◦ The developers are paid by (privately) making extensions

13. Premium user $$$ Free user $ Freemium model beneficiary user Payment $ Insurance model

14.  Explain in short your interpretation about the Freemium model.  Name 3 companies that are using Freemium?  What do you think is a bad side effect of the Freemium model? Explain why.  Is Freemium, according to you, an effective and profitable business model? Explain your answer.