
Freemium Is a Money Burning Business Model, Cheapium Is Better - joeyespo
http://jaredbrown.me/post/6071815182/freemium-is-a-money-burning-business-model
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api
A major reason for freemium vs. cheapium is to minimize friction.

Freemium signups can be achieved in a few clicks. But if you charge _anything_
, now the user has to pull out a credit card, enter digits, etc. That
additional investment of time might mean the difference between someone trying
something and not trying something.

Established brands like Apple can afford to charge for everything and not play
this game because they are already known. But if you are a scrappy little
startup, your biggest problem is often getting anyone to try your product at
all. Your product might be great, but if nobody tries it nobody will ever
know. Freemium is a strategy for achieving that _at some cost_ further down
the line in the form of overhead and possibly reduced perception of "high-end
quality," etc.

