freemium

Free is only a tactic, not a business model. Free: a Tactic, not a Business Model | Tech News and Analysis

Redeye VC: The Penny Gap … my primary point was to state that many people (mistakenly) believe that getting a consumer to go from “free” to $1/month is just as difficult as getting someone to go from $1 to $2/month. I think that there is a huge burden to getting a consumer to pay anything — and entrepreneurs tend to underestimate the level of effort.

I am done with the Freemium Business Model « Tyler Nichols Weblog I have come to the realization that most people who want something for free will never, ever think of paying you, no matter how valuable they find your service. (…) Free customers are higher maintenance than paying customers. Great discussions and points of view in the comments.