Use fremium model to grow sales

Fremiums allow users to access certain information or services for free but to pay for any advanced features or continued use. FILE

While doing my research online, I have come across many websites that offer good material. One of my favourite is a website on financial services law that offers users material from around the globe.

Initially I was required to subscribe, then I started receiving free newsletters for a period of time. Once the newsletters stopped coming I was asked to make a payment if I wanted to continue receiving the newsletters and also if I wanted to network with other lawyers in the same industry.

Part of the benefits that came with payment was that my name would be listed as the contact person in Kenya.

I attended an Intellectual Property conference recently where I learnt that the owners of this website were operating on a business model known as the freemium.

It is fast picking up in the sale and marketing of digital products such as websites, media, software and games.

You may have noticed that most websites provide useful information for your use but limit certain information or features unless you pay a fee.

For software, most owners allow you to download the application for a number of days and thereafter require you to pay for continued use. Media houses too use the model.

A freemium model serves to “whet the appetite of the user.” In my case I had already acquainted myself to the financial services law newsletters and I almost felt the need to pay for continued use of the website. The owners had already created in me a demand for their services and could, therefore, easily sell the service to me.

Freemium business model is, therefore, a way of marketing your specialised services using your general features. A freemium also enables you to reach a wider audience.

A website using the freemium model is more likely to make a sale than a website which does not offer users the opportunity of access.

From the conference, I learnt that a software developer does not have to copyright all their products.

Most users are unwilling to make a high investment to buy a license when they have not been given the opportunity to sample the product.

However, if you provided the general features of the licence for free and subject advance features to licensing, then chances are you will make sales.

Establish what appeals to the masses and provide that for free while those with niche tastes get to pay for the extra features. License the extra features and subject the users to payment of royalties. A copyright infringement case would, therefore, be based on the niche features.

Software developers can explore this concept more and consult with the experts on how to reap maximum benefit from their developments.

Ms Mputhia is a partner with Muthoga Gaturu. [email protected]. www.mgadvocates.com

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