Free, Gifting and Freemium – what’s best for your business?

How Gifting is Similar and Different to Freemium

Derived from…
Seth Godin, Linchpin: Are You Indispensable
Previously
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, you 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.