A few years ago, freeconomics was the popular word which can explain many kinds of web service model. And the thought are effective until now. Even it develops into detail revenue structures including referral fees and freemium as well as advertisement. And an advertisement business model is no longer than a simple CPC model. It has advanced to CPA and it’s evolving to something new now.
In many countries, mobile services such as VODs, MODs, games and most applications are charged by carriers or service providers. But after the launch of iPhone, the service charge is included to the basic pricing scheme. This system naturally gathers subscribers who actually use mobile contents via multi-networks such as Wi-Fi, Wibro, and wireless communication.
And the battlefield ignited by Apple is expanding its area. Even Google’s real google phone, Nexus One, will contribute to break down the barrier between wired internet, so called internet and wireless internet, so called mobile internet. And the issue of this battle is the way how to gather users to make new business chance and how to connect this power to a successful business model.
Apple’s iPhone and App store is so smart that many players follow Apple’s strategy. Binding a device(handset) with applications or OS is a common strategy which can provide a differentiated value to customers. Apple makes money to sell a series of devices such as iPod touch and iPhone. Applications which are bargaining at the App store are attractrive method to churn in competititor’s customers and lock them in.
In Korea, there is very interesting business model, referral fee. If someone who wants to buy some fashion items, they use a search service and naturally are guided to an online shopping mall by the link button in a portal site. And if the customer who is referred by the portal buys some items, the portal will take the share from a shopping mall. And in other countries, portal sites with strong search service are making revenue via this model.
Freemium strategy is also intriguing people who has a regular salary to spend their money to shorten time to get some level of game or make their virtual room more attractive. The representative cases are Zynga’s games – Mafia wars, Farmville and others. Users can play Zynga’s games without spending real money. But some of items could be obtained by real money only.
Anyway making a well-structured free model is not an option but an necessity in the internet world.