The freemium model is conquering the market - what makes it different?

Service Business

According to the report prepared by and Distimo, programs in the freemium model conquered the market of mobile applications. The principle of its operation is simple - the user downloads the basic version of the application for free, and pays when he wants to take advantage of its extended features. The name of the model comes from the combination of the English words "free" and "premium".

The success of freemium is visible to the naked eye

In the two largest industry stores - Google Play and AppStore - the vast majority of purchased applications are those based on the freemium concept. Their advantage is huge - in Google Play only 1% of all purchases are fully paid programs, freemium takes as much as 98% of the share. In the store belonging to the Apple AppStore, the situation is similar - applications based on this model account for 92% of total transactions. Since the beginning of the year, there has been an increase in the popularity of freemium applications in both stores - in Google Play it was a jump by 9 percentage points, and in the AppStore by as much as 15.

It is a model that has also been successful in the world of computer games - the most famous example of its application is World of Tanks. This online production is free and the player pays only when he wants to get some additional items that will give him an advantage on the battlefield.

Freemium is not a demo

Finally, it is worth making a distinction between related software distribution models. So, a demo version of an application differs from a freemium in that it only offers a specific part of its capabilities (e.g. a stage in a game) and serves as an incentive to buy the full version. Another model is the trial - here we are dealing with providing full functionality only for a specified period, after which you have to pay to continue using the program.