Posts Tagged ‘Freemium Model’

The Freemium Model

Today we’re going to discuss “membership marketing”, and how it’s almost a requirement for a successful website. If you’re selling anything online, whether it’s ebooks, digital products or anything of that sort, then the membership system we discuss below can deliver those products in the most effective and profitable way.

Business Success Means Avoiding Churn and Increasing Revenue Per Customer.

To be a business success, you’ll need to avoid customer churn (or “turnover”). If you get 100 new members, but 99 of them quit after 30 days, it’ll be hard for your business to survive. In a membership context, it’s the period of time someone will keep paying their membership fees. So while it’s vitally important to constantly acquire new customers, it’s just as important to maximize the revenue of each customer you already have. So what we’re talking about is the backend, and the marketing funnel you have in place.

With a subscription membership model – where you have a recurring billing system in place – the backend is the recurring fee itself. The issue becomes keeping people as members at your site.

Let’s see examine how this plays out in the context of three popular business models: Read the rest of this entry »

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