There are several ways to catch the attention of a potential buyer. One of the most common and effective ways is to offer something for free to the customer. Using the law of reciprocity, if you give something for free the customer will feel compelled to give something back. The psychology of ownership also applies here. Giving a product away for free leads to a sense of ownership that will, in turn, motivate them to buy as opposed to deciding not to buy the product.
There are many methods to apply the freemium model to your business or product. For example, free use of a product with Limited capacity, Limited access, or Limited timeframe (usage) are all examples of Freemium.
Dropbox.com allows you to upload files up to 5 GB for free, but beyond that you have to start paying for it. Once you’ve uploaded 5 GB of content, it’s hard to not buy more capacity. Once the customer begins using the product, and takes mental ownership, they’ll have a hard time NOT buying (i.e., stop using it).
Upselling and other pricing strategies can have a huge impact on your bottomline. Sales Velocity Academy has 5 courses and 14 videos on Pricing Structure including “Freemium & Pricing Strategies, Death by Discounting, and more!
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