Freemium is not a business model. It is a marketing tactic, and can be used effectively for 3 primary purposes: to build awareness and trial, to serve as a customer acquisition engine through referrals, or to help a business achieve a networked effect. In addition, there are several risks to offering your product for free–most importantly, that you risk sending out a message that your product has no value worth paying for. I recently talked with my friend Linda Popky, of Leverage2Market Associates about best and worst practices in Freemium. If you'd like to listen, download the podcast.
