05-22-2011, 07:49 AM
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It's 42
Industry Role:
Join Date: Jun 2010
Location: Global
Posts: 18,083
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The other side of the coin
Quote:
Freemium is more difficult to market. Many of the sales that companies make online are through paid ads and affiliate marketing. It can be very expensive to offer a number of paid ads only to receive customers who won?t pay for your products or services. Affiliate programs typically don?t work as well either, because affiliates are not going to be paid for most of the traffic they refer.
6 Ways Freemium Can Kill Your Startup
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The upsell from "freemium" is dismal ... From our point of view affiliate referral from websites giving away content for free are referrals in the class of "seekers of free content" ? that is the referred's main intent ...
You can argue that some of the freebie seekers can be converted and I won't contest that statement but I do know for fact from the associations of keyword queries to conversion statistics that free or gratis does not convert as well as "mission specific" keyword queries. In fact, "mission specific" keyword queries are 4 to 8 times more likely to result in paid conversions.
Premium incentive marketing is a mid 20th century concept still used and hardly a new concept. Maybe, its reincarnation with with a twist as Freemium has added a new dimension with the concept of sales of a closely related product justifying its expense.
However, from the viewpoint of our costs of advertising, bandwidth and overhead costs I won't be buying this sort of traffic as it is not economically justified.
Slapping cow shit against the barn wall and hoping some will stick is a very old technique in sales and marketing. Problem is, if you are lucky enough to get some shit to stick on the barn wall ? how long before it slides down off the barn wall?
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