How to make money from free mode?

With the promotion of the Internet Free Army, more and more people have focused on the free product, so how can the product with the investment need to be returned to survive and be profitable? Let's take a look at the following:

Advantages of Free Mode success

Tolstoy once said "happy marriages are similar, but unhappy marriages are strange". This sentence if used in free mode, but also the same set up. In fact, almost all of the free mode of successful enterprises have a common place. So below I'll list six advantages of free mode.

Low cost

The low cost mentioned here refers to the average cost per user of the free user. The average cost per user is so important because it comes from an important arithmetic that all revenue must cover all costs and have a surplus. If you offer a high cost of free services, the pressure on the charging side will multiply.

Mass users

The significance of mass users is huge, the low cost mentioned above relies heavily on marginal effect, and the marginal effect must come from mass users. This one. Second, the success of a business model is not only to make money, but also to make big money. There are two ways to make a lot of money, one is enough paid users, and the other is the high enough single user contribution value. And whether it is enough to pay users or high contribution value users in fact, ultimately from a large number of users.

Affective decision making and creating demand-oriented

Because of the free mode of mass user characteristics, making marketing "suction" force must be more than the push of sales "push" force to have higher feasibility. Free mode is not able to give a good sale of the Commission, which makes all marketing promotion must rely on high beat market behavior.

Zi Yue: "I have not yet Deru lecherous also!" This lust is emotional demand, this good virtue is rational demand. If we hope that the product can be opened through the free mode, its user needs to meet the need to be simple and rough directly, like the corner salon those pink lights in the white thighs as straightforward to do. To say half a day to understand the user is still skeptical, that is not true.

Light Delivery

Light delivery unfolds in two aspects. The first is the standardization of products and excellent UI so that users can learn to use without training, and second, the follow-up involved in the number of artificial customer service is very small. And the labor cost of training and customer service, the free model is obviously unable to support.

High competition

As a result of the oil slick effect, early market service providers have a first-run advantage, do not need to invest too much marketing costs to obtain the best quality of a group of customers, especially in the operating business model, this batch of quality customers will continue to tribute

To offer revenue profits, so that the service provider can more power at both ends of the product and sales increased input, this Matthew effect once started, the competitor to enter the market is difficult to catch up. Alexander the Goldie's approach to cut open the knot is widely used by market pursuers-not in accordance with the rules of the leader of the game, through the free mode of innovation. For example, 360 anti-virus software market strategy.

Can be superimposed

As mentioned before, the free mode of final profit, a look at the cost of the free price of how low, the other end is looking at the charge of this ARPU value base is how high. In a single product, the enterprise's pricing power is weak, must be fluctuation and in line with consumer psychological expectations, but if you can overlay products, the situation is completely different, make a sum is a sum, earn two is two, earn three is three pens ...

The above six conditions are favorable for the successful free mode. The so-called advantage means that if these conditions are available, the free model will be more successful. These conditions are not necessary, even if they do not have a few, the free model may not be unsuccessful, these conditions are not sufficient conditions, even if everything, free mode may not necessarily be successful.