The Pros And Cons Of Freemium Software

The freemium sales model has become the newest and fastest growing sales model in

the software industry used for web based products and, more commonly, among PDF software. This model can be beneficial to suppliers and consumers because it allows consumers to become familiar with an otherwise unknown product for free, while creating sales opportunities for suppliers. Although the freemium model is a great new way for both consumers and suppliers to benefit from product offerings, for suppliers, the cost to offer a freemium product can be costly and for consumers, can become costly once their need for premium features increases. In order to balance out this dynamic, there are ways for consumers to keep costs low while still benefiting from premium features.

Freemium software allows users to receive reduced benefits from software products at no cost but charges for premium features and services. Since a significant number of consumers only have basic needs and will only use minimal features anyway, this model can provide value. Freemium also gives consumers, interested in premium features, an opportunity to try out the merchandise before making a purchase.

For suppliers, offering the freemium model is a new way of creating brand awareness with short-term and long-term benefits. Suppliers can benefit from the freemium sales model in the short-term because consumers are always looking for quality products and benefits at little to no cost, which will increase product visibility for suppliers. Suppliers also receive long-term benefits because free users create additional brand awareness through word-of-mouth and may eventually become paying customers.

Although the freemium model can be valuable to suppliers, there can be a number of setbacks: (a) suppliers may not be able to recover the cost of offering free software if users decide not to upgrade. (b) If the product is not good or if the service is glitchy, it can result in negative consumer perception and tarnish the image of the product and company, thus making it harder to convert these users into paying customers. (c) Consumers may not consider the premium version valuable enough to pay for it. (d) Consumers may find similar premium features for free or at a lower cost elsewhere.

Usage of freemium products also has some drawbacks for consumers: (a) consumers receive minimal functionality. (b) Freemium software is usually ad supported which is deemed undesirable by many consumers. (c) Consumers are bombarded and pressured by promotions to upgrade. (d) Premium add-on features, if desired, may be too expensive thus causing them to spend more time and effort looking for alternative products. (e) The infinite use of freemium products is not guaranteed.

After taking the many drawbacks to freemium software into consideration, a better alternative to freemium software is low-cost software with built-in premium features. Low-cost premium software products are a valuable way for consumers to access premium features rather than adding premium features to free models. Low-cost software can save consumers time and money by offering a premium solution up-front with lower long-term costs, and is a great alternative for consumers when their needs outgrow their pocket books.

For a low-cost alternative to freemium PDF software please visit the PDF Studio website for more information.

by: Gen Wright

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