A Systems View Across Time and Space
Table 3 Patterns of free business model (Brynjolfsson, 2010, Hofmann et al., 2010, Chaffey et al., 2015, Agostinho, 2016, Laudon et al., 2016, Lamberton et al., 2016)
From: Literature review on business prototypes for digital platform
Pattern | Description | Payment type |
|---|---|---|
Advertisement-based | This is basically a multi-sided platform-based pattern; in this, the firm earn revenue by showing ads and by the payment done by users to stop getting ads which totally depends on the user. | Can be one time or repetitive or both. |
Freemium | This is basically a pattern in which a firm offers a basic free service to its users with an option to purchase premium services. | Can be one time or repetitive or both. |
Bait and hook | This is a pattern in which a value preposition is provided for free or at a nominal cost for a certain period and when that initial period gets over, customers tend to make further purchases to continue the service. | It is mostly repetitive in nature. |