How Do Companies Gain Revenue from Free Products Under the Freemium

question 62

Multiple Choice

How do companies gain revenue from free products under the freemium model?

• A)They operate as nonprofits.
• B)They are sponsored by wealthy sponsors.
• C)The cost of the free service is minimal (usually web based) and the upgrade costs enough to cover the cost.
• D)They get donations from users.

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Definitions:

Differentiation Positioning

Differentiation positioning is a marketing strategy where a brand establishes itself apart from competitors by emphasizing unique features, benefits, or aspects of its products or services.

Imbedded, Detachable Wheel

A wheel design that can be integrated into an object and easily removed or detached when necessary.

Differentiation Positioning

A marketing strategy where a company seeks to distinguish its products or services from competitors through unique features, benefits, or attributes.

Distribution Strategies

Plans and tactics used by a company to deliver their products or services to the consumer or business user.