These companies are base on offering products or services for free to customers and earn their profits through the publication of advertisements in their products or the sale of user data to third parties.
Within these business models we find social networks and other content platforms. Facebook, Twitter, Telefónica (they sell user data such as location, habitual movements, web pages they frequent and YouTube are well-known companies that receive income in this way.
Open Source Or Open Source
The open source model is characteriz by the use of free access software, which enables a community of programmers to contribute. Companies like Red Hat, for example, make money by charging premium subscriptions and services associat with their open source software.
Last year, the company generat more than $2.5 billion in revenue, of which more than $2 million was from subscriptions and about $345 million from training and services. But all these amounts do not translate into direct income for the company. These business models also involve expenses, such as sales Slovenia Mobile Number List and marketing, to distribute their services.
As highlight in its annual report, thanks to the open source business model. Red Hat has three key advantages.
Examples Of Business Models
This term, coine by the American businessman Fred Wilson, is a combination of the words “Free” and “Premium . The idea behind this model is to offer a product or content for free while reserving good content for payment.
Paid content for users is known as Premium . Sometimes Freemium content includes embedd advertising or marketing even though the hope of digital businesses is that ad revenue and profits from premium users are enough.
The most representative case is that of Spotify ; in which in the free layer you can listen to unlimit music but with ads from time to time and without being able to choose songs within an album (they are chosen randomly). Those users for whom this spoils both the experience of using Spotify and that it compensates them to pay the monthly fee will be the paying users. The rest will remain in the free tier.
Also other companies like Adobe (with its Acrobat PDF reader) or Skype are examples of this model. In the case of Adobe, users can use their free version of Acrobat to read PDF files, but if they want to modify or edit the content of these files, they must pay for the updat version.