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Freemium or "Pay nothing and take many want"

Of the most basic developments in the world of marketing is Scheme 2 x 1, or "Pay 1 and take 2." However, in the digital world and having available the Internet (which actually is a 24-hour market with millions of potential customers) the strategy that is being imposed is 0 x N or pay nothing and take many want "(English Freemium which is the contraction of the words Free + Premium).

Freemium model works for free and freely making available a product with no time limits, fully functional, unrestricted. While this option exists free (Free), other options are available that have an associated cost (premium) or the same product with additional features or different products.

The idea is simple: taking advantage of the marginal cost of distribution is virtually zero will receive a free product, with that action gets the attention of the maximum possible audience, and this huge number only a small fraction of them pay for products with more features or different but offered in the same part.

is true that under this scheme does not meet the Pareto Law (or law 80/20) but it plays an irrefutable truth: a small percentage of a very large amount, is an equally large amount. Using an example with numbers: 1% of 100, may not be much (is equal to 1), but 1% of 1,000,000 is large (equal to 10,000).

Keep in mind that this is only possible when the marginal costs of distribution are close to zero, which is basically the case in all digital products like software, ebooks, calls, video conferences, but also can make products "real", eg

• A municipal government can give away air tickets for people to visit the city (Free), on the premise that the costs of these attracted visitors generate taxes (Premium) to offset the cost of the ticket. Many may not spend enough to offset the cost of the ticket, but there are some who spend far more than normal.
• A university can give the first half of all courses offered (Free), with that will attract the best students, under the premise that the best averages to remain free or scholarship (Free) but the rest have to pay the remaining semesters (Premium).
  

For those who still think the model is not viable in real life think that companies like SKYPE follow this model and have taken full advantage. Skype offers free service between Skype users (Free), but is free if you want users to call landlines or cell phones (Premium). In the case of tangible products, cell phone companies give away phones (Free) for people to make use of the service and pay for it (Premium).

Remember: it is giving away FREE business is to use a marketing tool promote the business, is to call the attention of everyone in the market, attract them to the store to see if the products are paid and not just interested in buying but they are buying.