The Price of Freemium

I learned long ago that nothing in life is free. As much as we like to think that all the content we consume online is free, the reality is that someone somewhere is paying for it. Today most users are not willing to pay for online content because they have been spoiled and fooled for so long. Startups and industry participants continue to fuel and support this illusion by building and launching web services based on a freemium model.

Google is the poster child of the freemium business model. Their success has created the illusion that content and web services should aways be free. And while the freemium model is great and works extremely well for Google the reality is that it’s not so great for everyone else. What about Facebook and Twitter you may ask? The freemium model appears to be working just fine for them. Let me repeat myself, nothing in life is free.

Services such as Facebook and Twitter depend on your data and content to make money just as much as Google does. That’s right people, I said “Your data and content”. Without your data and content there is no Google, Facebook, or Twitter. So they are making money off my data and content? Yes! Your thoughts, your posts, your pictures, your videos, your friends, and your interests are all worth money. Did you really think it was free?

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About adshouts

Founder & CEO of AdShouts.com
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