Sunday, May 3, 2009

What are "Freemiums"?

The “freemium” model is a huge and growing trend in online income. It's basically the old membership program, but in blog or website form. What you do is provide plenty of quality content for free to your audience, and also provide a premium-level program to those willing to pay for it. You charge a monthly membership for people who want access to the "premium content", providing a steady income stream. It should come as no surprise that online porn sites make the most use of this business model. If you are considering using the "freemium" model to monetize your website or blog, be sure to have a contract in place that your members agree to by signing up for your service. Still not sure what I'm talking about? Well, Amazon Prime is another example. There is no membership fee to shop on Amazon.com, but customers who pay a small annual fee get free 2-day shipping on all of their orders. It's sort of like the next level of service.

More information and examples can be found at this FAQ.
Also, don't forget to consider affiliate programs such as Google Adsense!

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