Why “Freemium” Rocks for Small Businesses
August 13, 2018
What’s magical about starting a small business is that you have choices. Tons and tons (and tons) of choices, from the color of your walls to the name of your products.
The same goes for business models.
You could have a paywall on your website to protect your content, only allowing customers to read, eat, or whatever it is you do — remember: choices!
If we’re talking business, paywalls help separate paying customers from digital bystanders so you know the true size of your audience.
Plus, they can limit the risk of products leaking out for free like we see with movies and software programs.
Face it: if someone has a choice between paying for something and getting it for free, they’ll probably opt for the latter. Makes economic sense, right?
But on the downside, paywalls can limit the number of visitors hitting your website, and can leave a bad taste in people’s mouths — still don’t forgive you, WSJ.
Or you can be what the majority of the internet call a “bro” — or “sis” — and make everything on your website free. In some circles, this is also called pulling an Oprah.
Although monetizing this model can be a challenge, it’s sure to make website visitors happy.
So happy, in fact, that they might just walk on over to your store and show their appreciation with a purchase or two.
But for some small businesses, where money is tight and deadlines are even tighter, “might” won’t pay employees and cover inventory.
And although paywalls make great business sense, business owners don’t want to turn away people that are interested in their products and services.
What do bodybuilders, gymnastics, Jedis and successful small business owners have in common?
Choices are great — we’ve covered this — but balance is even better.
With the magical power of balance, you can have your cake and eat it too — profiting from customers without driving them to the dark side.
The trick to achieving balance in your small business is by using one of the best business models out there, “freemium”.
Freemium is exactly how it sounds.
A part of your business will be free for any and all that are interested.
This could be free samples, free consultations or even free web content that get customers in the door— either physical or digital.
It could even be a free trial that allows customers to try your product firsthand.
For many, this will be all that they need to seal the deal.
They will appreciate and admire your business for providing immediate value, which could lead them to become paying customers in the near future.
The other part — and this is important — will be premium.
Premium features better monetize your business. When all of the consumers enjoying your free stuff want to keep the party going, they know where to spend.
If you’ve given them a free 30-day trial of your software, they might love how it improves their productivity and cuts costs enough to pay.
In all likelihood, once their trial runs out, you’ll be looking at a paying customer.
Similarly, Veem offers a freemium model that helps small businesses with their global payments.
With no payment or wire fees, two-factor authentication and the ability to send and request payments, Veem’s free version is already better than traditional bank wires.
Once you fall in love with the platform, you can switch to Veem premium and enjoy dedicated account managers, Xero/Quickbooks integration and more specialized features that make global payments a breeze.
Sign up for Veem today for payments that keep you growing.