Freemium Monetization
This chapter, “Freemium Monetization,” provides a framework for integrating monetization mechanics—means by which users can contribute money to a product—into freemium products, given the parameters under which the freemium model operates: massive scale and low inherent conversion. The chapter begins with an overview of choice theory and vertical product differentiation, which posits that providing consumers with a large degree of choice increases the extent to which they feel their personal tastes are accommodated, given that a broad product catalogue is capable of serving preferences more precisely. The chapter then outlines a concept called the continuous monetization curve: the idea that the broader and more ...
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