Until yesterday, I was of the mindset that the freemium business model could be applied to most business software offerings and it was a matter of coming up with the right packaging to determine which features should be offered for free and which should be offered as premium, for-pay features. I am now of a different mindset.
In the business software world, I think the freemium business model is ideal for the following use cases:
- Offerings that are targeted at an individual and where no organizational decision making is required to decide whether to use the offering or not. LinkedIn is a good example of this.
- Offerings that involve small workgroups and where its initial usage is not part of a business-critical workflow (i.e., its usage does not require high-level authorization within an organization). Wikis, I believe, are a good example of this type of offering. Within organizations, wikis can initially be used by small groups of people for purposes that are not business critical.