A map on freemium business model

There is a continuous discussion about business models in the web. I’ve put together overtime a few maps on each major business model. Here is the map on freemium that gives a comprehensive view on this business model. There are 3 sections in this map.

1. The first branch gives a general perspective on the freemium business model. For those really motivated they are 2 academic papers on the value of a free customers at the end of this branch.

2. The second branch goes into the key success factors such as scale, pricing, metrics, etc.
3. The third branch focuses on benchmarking real life numbers on conversion, price points, average rates, etc. Non-EU people, may find interesting to have a look at the annual reports of Xing, a local competitor of LinkedIn that is publicly traded.

Just click on the pearl below then on the play button and the arrows to be guided through this map.

NB: if you have some relevant posts to complement the map, don't hesitate to post them in the comments, especially posts on real life numbers or experience (vs. "conceptual" posts).

 

Comments

[Mukund Mohan]

Julien
We wrote two pieces on freemium that might be of value.

http://news.buzzgain.com/freemium-is-dead-long-live-freemium

http://news.buzzgain.com/the-metrics-we-track-and-report-example-for-freemium-products

[Wallen's]

Thanks Mukund. I like a lot your post on metrics. I've put it in the map.

[Jamie Varon - techVenture]

Great info! Thanks for the map - super informative.

[Wallen's]

You're welcome, Jamie. It's my pleasure.

[Mark MacLeod]

Very cool Julien. Your best map to date

[Generic Viagra]

Can you suggest me a business model for a stock broking business ?
A stockbroker would like to differentiate his company from the competition. Since stocks are like commodities differentitation in the business model will improve margins.

Usually the client values the wealth he generates while trading with a particular stock broker the most. Other value added services including quality research & goos service are important, but you know no one can predict the markets right so they could be subjective.