Freemium – A Net Business Model

Free is great, isn’t it? The Net is packed with free stuff.

Need a free dictionary? Use Dictionary.com. Need some free music? Listen to Pandora. Want some free news? Try CNN.com. Free classifieds? Try craigslist.com. Free phone calls? Dial Skype. It’s all free. I should know, I use all of these sites and services.

And, insanely enough, many applications are free. Years ago, you had to pay for word processing, spreadsheets, and databases. Now, you can get pretty powerful software, all for free.

As I noted in an earlier blog, free isn’t really free. Someone is paying for it in the hopes of earning money. While most of these applications and resources will remain free, there are a few that are starting to turn a profit on the “freemium” model.

That is, it’s free, but to unlock powerful premium features, you gotta pay. Hence, the techronym freemium.

Freemium in My Life

Here are some examples of free and freemium services that I use:

Google Docs - Google ApsGoogle Docs:
Free productivity software. Good stuff. I use it a lot. All free, until I want to roll it out enterprise wide to my coworkers or employees.

And if you use GMail, you may eventually run out of space. Yup, look at the bottom of the GMail window, and you will see a little “% used” message. After you exceed your GMail limit, you may be prompted to upgrade to a paid Gmail account.

Zoho PremiumZoho Docs:
Similar to Google Docs, Zoho is a productivity software suite. Actually much broader and more powerful than Google docs, but not as well known.

Similarly, you can do a lot with Zoho, but if you want more features and space, you pay a Freemium price. I’ve been impressed with Zoho’s software suite and may tap into a few of their premium features.

Flickr PremiumFlickr:
A photo sharing social network. I keep all my photos here. And now, with a pro account, I have greater control over my photo sets and I can upload videos.

Someone gave me a freemium Pro Account for my birthday and now I am addicted to it.

Evernote PremiumEvernote:
A free to use idea-and-stuff capture system. (It’s hard to explain. Check it out.)

A freemium account unlocks more space and flexibility in Evernote and some cool digital camera features.

WordPress PremiumWordPress Premium:
This very blog is based on free WordPress software. The free version allows me to blog on their platform or even install it on my own web server.

But a premium version unlocks some extra features and hosting options.

Will Freemium Work?

Will the freemium business model work? Will people pay for stuff that they are used to getting for free?

Let’s hope that the added features are an incentive to get people to shell out a few bucks. Because eventually, some of these programmers and content creators are going to want to get paid…they have to pay the rent and utilities too.

For now, most everything on the Net is free and freemium features may help to keep it that way.

In the future, freemium features are going to matter a lot. This will be the way that many sites capture revenue…and the way they attract advertisers and partners. (For example, “how many people are registered for the free service vs the freemium services?”)

For more on freemiums, check out:

And, as always, a visit to my personal website at buddyscalera.com is still free

Help Wanted: Search Specialist

As we increasingly move to an Internet-centric society, we’re seeing all kinds of new and interesting careers spring up. Soon, we’ll see some interesting career opportunities for smart, adaptable workers.

A few years ago, we saw the rise of professional bloggers and search engine marketing specialists. Right now, we’re seeing professionals developing mobile applications and social media widgets.

In 2009, we’ll see the evolution of the Search Specialist. Now, these people are already out there in niche jobs (and they’ll probably be able to find this blog posting). But coming soon, we’ll probably see headhunters and HR departments looking for knowledge workers who can quickly and effectively mine the Net for super-specific information.

It would be natural to expect this to go to someone with a library sciences degree, but I think Search Specialists will evolve from people who work within specific industries.

I’ll give you an example. I worked as an editor at a small e-marketing agency specializing in pharmaceutical communications directed at healthcare professionals. On my team, I had an editor who was a wizard at uncovering information on the web.

Sure, she was good at Google, but that’s a given. She also knew how to dig deeper and get information in other search engines, like Yahoo, Ask, and MSN (all of which give different results). She also knew how to search blogs, message boards, and news articles to dig up more information.

This is going back a few years before the big YouTube and Twitter explosion. But a Search Specialist will be the kind of person who can quickly and effectively dig up, organize, and present highly focused data sources.

In our case, this editor could dig up information, sort the gems from the junk, and generate an informed position on just about any topic you can imagine. Going forward, and it’s going to be important to access all kinds of information on the public Net, even the stuff that isn’t well tagged and indexed by Google.

Blogs, videos, Flash interfaces, games, e-books, Twitters posts, social networks (including Facebook & MySpace), manuals, databases, closed communities, news archives, software, all contain valuable information. Some of this information is indexed, but most of it is not.

Several industries already leverage search specialists, including patent and other legal businesses. In the future, other industries will seek people out who can mine and measure information from Net sources.

Search Specialists will be needle-in-a-haystack researchers who defy traditional job roles. Some of them will be research specialists or editors or scientists or journalists or work from home entrepreneurs.

In the beginning, they will be underpaid and under appreciated. But one day they will be valued and coveted knowledge workers who can extract stubborn data from nearly any source. In the right organization, they will be highly paid and highly promotable, especially as they research corporate strategies.

If you like to search, discover, and organize, it’s probably a good time to start positioning yourself as a Search Specialist in your current career. Eventually, as the career landscape shifts, you’ll be prepared for a new career as a Search Specialist.

Techronyms for Search

In the technology business, there’s a new acronym for every new product, idea, or process. They call these “techronyms.”

Anyway, I find that mnemonic tricks sometimes help me remember techronyms and people’s names.

I wanted to share a quick one that comes up all the time when I talk with people about Google Adwords and Yahoo Search Marketing. Here’s one to help you remember the difference between Search Engine Optimization (SEO) and Search Engine Marketing (SEM).

Remember that the “M” in SEM stands for “money.” The “O” in SEO is for “zero-dollars.” That’s because SEO is free.

As I think of more techronyms, I’ll post ’em. If you’ve got any, post ’em.