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06/02/2018

How to make money on free

How to make money on a free: models monetization that model of monetization of web-projects like tested and proved their efficiency, the problem of earnings in the Internet business is still relevant and sharp. Especially if we are talking about content projects and online services. Service users Quora highlighted some of the most typical ways of generating income for the free web services. Many of these models successfully tested by major companies, who should learn to earn money.

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Freemium model

The Freemium model are called classics for most web services. This model is most often tested and demonstrated its effectiveness. Freemium implies that the clients are offered a free product (e.g., a program, or game) with limited functions or features. For a fee, the user receives a “missing” functionality. This model used by most SaaS products.

Model “on trial”

This model does not work for all products, but it also proved its effectiveness. First, the product is free, so to speak, “on trial” for a limited period of time (trial version). After the deadline to continue with the product or service, the user needs to upgrade to a paid model settlements. For example, the developer 37 Signals for most products used the free 30-day trial period.

Targeted advertising model

Companies that want to earn from advertising, you need to know more about their customers and deliver relevant and targeted ads. So make Facebook and Google.

Sponsorship model

In that case, if your service indirectly helps the authorities and/or large companies, it is possible to use a sponsorship model, in other words, you can try to contact the concerned organizations for support. This scheme is funded by one of the largest startups operating in the market for MOOC-learning — project Khan Academy, which sponsors are the Gates Foundation and Google.

Model Wikipedia

This model is in the collection of donations from users. A WordPress plugins, apps, open source, and Wikipedia use this model.

Model Gillette

Printers and razors are famous are sold at low cost, since the main long-term profit provide replacement cartridges or blades. The printer or the machine is useless if its owner won’t spend money on second highly profitable additional product from the manufacturer. For example, you can create a cloud service which will allow free to create and edit documents, but to copy the final file to your local computer, you will need a payment or subscription.

The model of open source code

This model is to provide free product based on the receipt of money from his support, configuration, customization and installation. Most software with open source works on this model.

Exceeding the free limits

This model is similar to the Freemium model. Users free full product, in which limited amounts (proportions) of use — for example, the space for data storage (like Dropbox), or the number of downloads. To use the product in the best of their needs, the customer has to pay.

The model of “Credit card”

In this model, the product is free for one side (consumers), and through network effects revenue comes from the other side (sellers). A similar model is already used by Facebook, Yelp and other online services.

Of the additional sales / cross-selling (Up-sell / Cross-sell)

Offer a free product to promote a premium product in the same segment. For example, on the financial website can be free information service stock price, and the hotel provides analytical reports and tools of financial planning.

Model Zynga

Profit from the sale of virtual products or opening up new levels inside the free game.

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