Wednesday, April 21, 2010

How Gifting is Similar and Different to Freemium

How Gifting is Similar and Different to Freemium

Derived from…

Seth Godin, Linchpin: Are You Indispensable


Building Your Tribe Through Your Art

RAP 7: Your Tribe (3)

Freemium and Gifts
There is a parallel to the ‘Freemium’ business model here.
A ‘Freemium’ model suggests you give away a basic version of your product or service and sell a ‘Premium’ or full featured service.
For example, Skype enables free web to web calls and charges for calls to
landlines or mobiles.
Typically, 90% of your customers will accept the free service.
The advantage of offering a free service is to attract a bigger audience who sample, use and advocate your service.
Freemium is a business model.
Seth’s Linchpin model is for your personal career.

The big difference is intent.
To be an artist, yo
u have to create art first.
This is the gift.
Whereas Freemium is not intended to be art, it’s business - it’s a reciprocity deal.

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