Sunday, October 28, 2012

Freemium Funding

All the research I'm doing on the "freemium"funding model for online and mobile devices keep talking about it as if it is new. But in reality, this model has existed since infomercials and trial periods were born. At least, the principle is the same: Let the consumer try the product (one of Everett Rodger's qualities in the diffusion of innovation), then once they're hooked up make them cough up the payment. I remember watching infomercials that not only promised steak knifes, but a 30 day free trial. This idea has transformed when applied to the web and especially mobile devices. Farmville is free to start playing on Facebook, but if you get addicted and can't level up until you earn an item buying that item starts to look like an appealing option. The same idea is applied to mobile devices. Sure you can play Fruit Ninja for free, but you want to play something other than the arcade version? Well just click right here and purchase the version you'd like. Want more colors in DrawSomething, but can't figure out your friend's pictures? No problem, the in-app purchasing allows you to simply click and purchase without ever leaving the game. It is a fascinating way to apply an old idea to new media.

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