Ah, the world of business models—a realm as diverse as a jar of multicolored jellybeans. Today, we embark on a quest to unravel the enigma known as “Freeterprise”, a fairly new business model that thrived during the dark times of pandemic quarantine. Yes, it sounds like something out of a sci-fi novel, but it’s very much real and reshaping how companies like Zoom and Notion make profit.
Let’s begin from the beginning.
Freeterprise: Combining Free and Enterprise
Our story begins with a magical fusion of two words: “free” and “enterprise.” Imagine them coming together, like peanut butter and jelly, to create something beautiful. “Freeterprise” is born! It’s a model where companies offer free goodies to attract users and then work their charm to transform them into premium customers.
The Free Product Hook: Where It All Begins
Picture this: you’re walking in the mall, and a friendly salesperson offers you a free sample of a delicious new ice cream flavor. It’s just a taste, but it leaves you craving more. That’s the power of the free product hook. Companies like Zoom and Notion entice users with a basic, no-cost version of their offerings, and we gobble it up like ice cream on a hot summer day.
Who hasn’t used Zoom to get in touch with a group of friends, even to take a simple class on how to make bread? At this point, especially with the new modalities of work (home office, hybrid or overseas), we all have used Zoom at least once.
Reeling in Free Customers: The Art of the Catch
Once you’re hooked, the company has you right where they want you—in their community! They’ve cast their bait and created an initial user base. It’s like a social gathering, only it’s online, and you’re all united by your love for that free product.
The Conversion Tango: Turning Freebies into Profits
Now, here’s where the magic really happens. Companies employ their sales wizards to perform the conversion tango. These folks are the Gandalfs of business, turning free users into high-paying, premium customers. What happens if you haven’t purchased the premium version? You shall not pass!
Seems a bit complex? Well, there’s success in this model, and our previous example is the one to show us how the Freeterprise business model works.
Zoom and the Rise to Stardom: A Freeterprise Success Story
Zoom, the video communication platform, started with a free version and skyrocketed to stardom. Their mission? To make video communications “frictionless.” They offered a free product with limited features, and before you knew it, they had teams, companies, and even entire organizations using Zoom for their virtual meetings. It’s like going from zero to hero in the business world.
Notion: The Collaborative Genius
But Zoom isn’t the only hero in our Freeterprise tale. Meet Notion, the collaborative genius. They too embraced the “Freeterprise” model, providing users with a free taste of their powerful collaboration software. As more individuals and teams started using it, Notion turned them into paying customers, they can share their notes, files and workflows with their co-workers, allowing the collaboration between them to be more.
The Freeterprise Formula Unmasked
So, what’s the secret sauce in this Freeterprise recipe? Collaboration! As more users join in, the power of teamwork takes center stage. The experience begins with one user and spreads like wildfire throughout the organization.
The catch is in the target. A Freeterprise Business Model only exists when it’s final goal is to get as many businesses to use it as possible. A B2B, to speak in corporate language.
Freeterprise model is a captivating journey from freebies to profits, driven by collaboration and organic adoption. Companies like Zoom and Notion have mastered this art, and now you’re armed with the knowledge to appreciate their brilliance.
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