Since the definition can remain somewhat theoretical and intangible, I will explain several examples so that you can see in a real way what it consists of.
1. The “freemium” model
How many free tools do you currently use?
Probably many.
But you’ve probably noticed that the free mint data version has its limitations. If you want to go a little further and use more advanced options or have more space to store your files, you’ll have to pay a monthly subscription.
The key is that by testing the benefits of the tool, the customer sees how it can help them, which makes them decide to buy.
These are business models that need Understand in a to attract a large number of “free” users (to get enough paying users to support the project), so they must direct marketing tools provide a lot of value in their proposal.
There are hundreds of tools that work like this. Mailchimp , Sendowl, Hootsuite, Lastpass, Toggl and Spotify are just a few examples.
If you want to know more about this business model, I recommend this post by Javier Megias.
2. Linkedin: gamification to obtain data
Companies like Linkedin use gamification to continuously collect data from their users.
Gamification consists of creating small games within the platform that motivate people to carry out certain actions. For example, putting a progress bar that updates live so that they fill out their profile completely, like they do on Linkedin or Paypal.
Note that with a very simple action (and at a very low cost), they automatically obtain more data from their users.
3. Dropbox: Free gifts if you bring in new users
Would you recommend a brand if you received gifts in return?
Well Understand in a , that’s exactly what Dropbox does, and it’s what has led to incredible growth: giving away 500 MB for free for every new friend you bring to lack data the platform. In this way, it’s the users themselves who put their energy and effort into attracting new customers without the company having to do much of anything.
Interesting, right? If you liked it, I recommend watching this video by Neil Patel where he explains the Dropbox case.