Abandoning Free Software

The idea behind the freemium model is great: let everyone use the service or app for free, hope it goes viral, and consequently spend far less on marketing, instead putting it into building a fantastic product. And for a few businesses, this works. The entire free software movement, in my opinion, stems from just a few successful companies who utilized the freemium model: Evernote, Dropbox, Pandora, Automattic, Zynga, and Skype. Perhaps even Facebook and Twitter. The idea of behind the all too frequently heard line: 'we'll get millions of users first, and then worry about revenue' stems from these businesses. The problem is, just about every startup is following this mantra, Aand that's exactly the reason why a lot of them fail.

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Posted: January 1st, 2011
at 9:07pm by Koookiecrumbles


Categories: development,open source

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