

The Complete Guide To Freemium Business Models - matusz13
http://techcrunch.com/2011/09/04/complete-guide-freemium/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Techcrunch+%28TechCrunch%29

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littlegiantcap
This is something I struggled with for a long time in regards to my own
company. I did ultimately though end up with going with a "Freemium" model
though. The article does a good job pointing out the strengths of freemium,
and I think for any sort of social network based company (I believe he used
linkedin as an example) you would be hard pressed to find a pricing model that
works as well as Freemium.

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dools
_"Guess what? Because of declining hosting and bandwidth costs, for most
Internet products the marginal cost today is practically … zero."_

That's not really true at all. I remember reading an analysis of Google's
costs somewhere (sorry tried but can't find the link) that each search costs
something like 70c.

Even if it were much less (1c or 2c) that's still a hell of a cost for the
"paying" customers (ie. the circa 10% of people that actually click on google
ads) to be covering.

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waitwhat
_each search costs something like 70c_

Even two years ago, there were 3 billion Google searches per day. I think it's
safe to assume this figure has gone up a bit since then.
[http://searchengineland.com/by-the-numbers-twitter-vs-
facebo...](http://searchengineland.com/by-the-numbers-twitter-vs-facebook-vs-
google-buzz-36709)

I also think it's safe to assume that Google Search doesn't cost a trillion
dollars a year to run.

~~~
dools
Yeah a trillion is a little high ... damn I wish I could find that article
though it had this really good analysis of googles profits vs. number of
searches and then inferred the cost per search. Mabye it was 0.7c :)

