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Which web business model do you prefer: freemium or ad supported?

Created by : Ruchi Chawla, Associate/Sr. Associate -(Technical), Cisco Systems  | 08 17 2010 11:39:13 +0000
Industry : Advertising/PR/MR/EventsFunctional Area : Growth(Strategy & Execution)
Keywords : business model free services ad support paid services freemium
Activity:  227 views;  last activity : 08 21 2010 03:38:15 +0000

While many web companies offer their products for free, they aren’t exempt from the oldest rule of business: Make more money than you spend. The acceleration of the freemium business model makes us question if this what users want. Just as important, is this what web businesses need to do to become profitable?

So, what would you go for??

  
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Freemium Vs Ad Supported
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Depends on the extent of the ads.. some times I would rather just pay.. in the case of hootsuite - they have a great product and I don't see any issue with them creating a "Freemium" service.. I've been wondering while I've been using it how they are monetizing and getting anything from it.. it has seriously decluttered my social media presence for my personal life, my brand, and my clients
By Ruchi Chawla, Associate/Sr. Associate -(Technical), Cisco Systems  08 17 2010 11:39:13 +0000
 
Top Argument
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I don't agree with Ruchi on this......

Enterprise software companies have long struggled to crack the small and mid-sized business (SMB) market. The potential in this market is huge but the traditional enterprise business model simply could not scale down to work effectively in this market. Most of these vendors tried to take their enterprise sales, product and service models and push it down to the SMB market - all with limited success.

Today, new software companies are leveraging software-as-a-service (SaaS), open source and other new technologies and business models to properly address the needs of the SMB market. The free, ad-supported model presents a new way to deliver the right solutions to this massive market.
By Sheetal Jadhav, Sales/BD Manager, Future Group  08 17 2010 12:10:21 +0000
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advertisment really speaks poor of website.
By KHAIRATI LAL ARYA, Freelancer, Management & Strategy Consulting  | 08 18 2010 06:25:55 +0000
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Thanks for the invitation,

From viewers point of view:

When it is Ad Supported, then the question of target audience comes into play. As if, the site is particularly designed for a few people, falling into that category (for an example, we cannot visit a website/blog in public that contain explicit contents as ads, as if it is only for a few porn freaks, even if that contains some necessary info). Rest of the visitors (who are not at the target) are merely visitors who look for some info, hence they may not enjoy all rights with some of the registered group of people who directly or indirectly pay for registration.


By Kaushik Ghosh, Senior IT Officer, Minstry of Defence, Govt. of India  | 08 17 2010 17:02:59 +0000
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I must prefer the ad support website to publish my advertisments

because i make it totaly reliable and non changeable by others and make it efective
By Rahul srivastava, Area Business Representative, Premium Transmission Ltd  | 08 21 2010 03:38:14 +0000
Argue for "Freemium"
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