3.2.1 - Atomic Scaling: Revenue

3 Ideas

I.

Freemium Popularity: Freemium models are particularly popular in the realm of games, SaaS, software applications and internet-based businesses. This type of business model offers the advantage of attracting a substantial number of initial users.

II.

Low Customer Acquisition Costs: Since the initial basic services are provided at no cost, the freemium model tends to work well for internet-based businesses with small customer acquisition costs.

III.

Drastic and dynamic Increment: A successful freemium model can dramatically increase the number of customers by at least 10x, while gross revenue typically grows by 3x. Although the world of revenues may be flat with pay-to-play, it is drastically dynamic with a freemium revenue model.

2 Quotes

I.

“The more you give, the more you will receive.” - Common Proverb

II

“It costs us virtually nothing for a new user to join the Skype network.” — Niklas Zennstrom, Founder Of Skype

1 Question

Are you already considering a freemium subscription in your business idea? The next time you plan, consider the power of freemium model.