Comments on: Freemium: A future business model on the web? http://jboye.com/blogpost/freemium-future-business-models-on-the-web/ The international community for web and intranet professionals Mon, 30 Jan 2012 19:45:30 +0000 hourly 1 http://wordpress.org/?v=3.1.2 By: Niels Hartvig http://jboye.com/blogpost/freemium-future-business-models-on-the-web/comment-page-1/#comment-296 Niels Hartvig Wed, 18 Feb 2009 21:50:25 +0000 http://www.jboye.com/?p=1311#comment-296 At Umbraco we're basically using the freemium model in multiple ways with great success and I think this approach will become more and more popular in the "traditional" software space : - We have a free version of our Web CMS as well as a supported version with warranty (but in reality the core product is the same. The difference is in the add-on products and services which makes it easy to administrate). The 1%-to-99% ratio is our goal - We have a paid subscription based tv station delivering quality learning about the Web CMS costing around EUR25 / month. In this perspective we turn the classic CMS revenue model upside down where we go for tiny sales but many customers (infact close to consumer level), where as the traditional vendors usually have a (relatively) small amount of customers paying heavy license fees As the cost of software distributions is 0 today (in fact there's even potential revenue models on distribution) and the cost of software today is substantially lower than marketing and selling it, freemium is a brilliant model. Niels Hartvig, Founder, the umbraco cms project At Umbraco we’re basically using the freemium model in multiple ways with great success and I think this approach will become more and more popular in the “traditional” software space :
- We have a free version of our Web CMS as well as a supported version with warranty (but in reality the core product is the same. The difference is in the add-on products and services which makes it easy to administrate). The 1%-to-99% ratio is our goal
- We have a paid subscription based tv station delivering quality learning about the Web CMS costing around EUR25 / month. In this perspective we turn the classic CMS revenue model upside down where we go for tiny sales but many customers (infact close to consumer level), where as the traditional vendors usually have a (relatively) small amount of customers paying heavy license fees

As the cost of software distributions is 0 today (in fact there’s even potential revenue models on distribution) and the cost of software today is substantially lower than marketing and selling it, freemium is a brilliant model.

Niels Hartvig,
Founder, the umbraco cms project

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