Sitting at a computer for long hours like I do is obviously not ideal. I like to start my day with some kind of exercise. I recently added yoga to my routine. Have you tried it before? I was surprised by how physical it is. And how inflexible I am in my old age (41, LOL).
I downloaded a free app from Yogify. Yep, it's free. I get a fully functional application, can choose from three beginner courses and a couple of more advanced programs. I can use my own music. I can find out more information about how to do the poses. As it is, as a free app, it's brilliant. Perfect, can't complain.
So, how is Yogify making any money? Read on.
Yogify is using what's called a Freemium business model. Free + premium = freemium. What this means is that the basic service is FREE. Anyone can sign up and start using the service straight away.
But Yogify won't make any money doing this! So here's how it is really working, from a business point of view. Two things are at play.
One, they hope you love the app and TELL YOUR FRIENDS about it. They make it very easy to do this but inviting you to "tweet" your progress, via Twitter or post to Facebook. Each tweet or post includes the website address so that YOUR friends can also download the free app. What is desired is a viral* spread of the application - you tell someone, they tell someone else and before you know we are all yogifying. The premise here is of course that the service has to be GREAT otherwise why would you bother telling anyone about it?
The second thing at play, they hope you love the service and WANT MORE. And more you can have, if you PAY for the extra programs. And there we have the money-making idea for the business. Get as many people using the service and as many people as possible opting to upgrade to the PREMIUM service.
Do you think this is a good business model for what you are doing? Can you offer part of your service at no charge with the expectation that some of your customers will eventually upgrade?
*Viral - a popular marketing term these days which refers to ideas, concepts, products taking off much the same way a viral illness is passed from person to person