I wish I could take credit for coming up with the term, "freemium," but I can't. The term was actually coined a few years ago to define the way in which many web-based products would give away their services for free in the hope that word of mouth would spread faster. It has since become a proven business model for startup and well-established businesses looking to make a name for themselves. Some success stories include Skpe, Pandora and Flickr. So, in this era of freemiums, what are brands doing to take advantage of this trend?
Hopefully, the following:
- Watching for emerging marketing services that might be open to a freemium relationship
- Offering to lend their established equity to startup marketing products or services in exchange for free trials
- Asking agency partners to look for - and pass along savings associated with - freemium partners
With an understanding of how to take advantage of freemiums, it might help to better understand what one might look like. Granted, they don't always advertise themselves, they are out there and can take many forms. Some examples include:
- A year ago, we had a client who needed to unload a 1 million product samples, but didn't have any funds to support a sampling program. The solution was a network of new "girls night out" events in 30 different markets who gladly added the samples to gift bags and threw in free signage, literature and a web presence at no extra charge.
- Recently, a series of one-on-one briefings with grooming experts looking for fresh content uncovered a series of free opportunities for product integration into speaking engagements like television interviews and expert-sponsored get-togethers, during which brands were endorsed and praised by top stylists and influencers.
- While not always "free," we recently discovered a new twitter application developer looking to make a name for himself. As a result, we were able to negotiate a three-month trial at a very low price on behalf of our client who will be the first brand to bring his application to the market. The potential reach is in the millions, and the risk is considerably lower.
In summary, even if the opportunity isn't technically "free," new marketing products are appearing everyday and looking for top brands to experiment with. Often low risk, these partners can provide a strong ROI for brands looking to try something new. The agencies that regularly engage with these opportunities also seem to earn a reputation for being fiscally responsible and nimble, creative and cutting edge as well as thoughtful and trustworthy. Interested in reading up on freemiums? Check out Chris Anderson's 2009 book Free, which takes a closer look at the business model.
"Who is Keyser Soze? He is supposed to be Turkish. Some say his father was German. Nobody believed he was real. Nobody ever saw him or knew anybody that ever worked directly for him, but to hear Kobayashi tell it, anybody could have worked for Soze. You never knew. That was his power. The greatest trick the Devil ever pulled was convincing the world he didn't exist. And like that, poof. He's gone."





