Freemium service

Wednesday, February 22, 2017
Freemium service
Some experts think the "freemium" model is more successful than offering 30 day trial periods to try out a product.

Janna Atcheson and Ash Elghamry love what some call "freemiums"-- their electronics are loaded with them.

"We use a lot of different varieties of freemium models, applications and services," said Atcheson.

What are freemiums? We went to the experts at CNET.

"Freemium is a business model that essentially is any kind of program or game or service that is offered for free with the hope that you'll pay extra to unlock new features and new services," said Roger Cheng, CNET.

Atcheson and Elghamry use LinkedIn for networking, Dropbox for computer storage, and recently paid for premium Spotify for music.

"I do think it's good for consumers to be able to sample the product or the application before they end up paying for it," said Elghamry.

Tech experts say expect to see a lot more freemium-based services.

"The growth of freemium is explosive," said Cheng.

Experts say one possible pitfall? Some digital games offer the option to pay for bonus levels and characters so if you get hooked-it could put a dent in your wallet.

"With freemium you can spend upwards of $50 to $60 in little increments getting these upgrades time after time. So, if you're really, if you're one of those people who gets into a game the freemium model can kind of suck you down this rabbit hole where you are spending more money than you'd like," said Cheng.

Atcheson and Elghamry say the premium services they paid for are worth it.

"It makes a big difference in what you can access; it makes a big difference in the quality of experience you get," said Atcheson.

Some experts think the "freemium" model is more successful than offering 30 day trial periods to try out a product.