I'm interested in building a Social Networking app, on a freemium model, which can potentially change the lives of a lot of people. I have no idea how I would monetize the idea. Any suggestions/advice on creating a freemium social networking app, and monetizing it? How much investment does one need? Is it possible to bootstrap such a model?
I'm in no position to advise on the cost of a Tinder-like app - having never used it myself.
I can however share some thoughts on Freemium.
Freemium is too often engaged because it is easy - not because it is right for the business. You'll still need to determine how'll you make money, even with freemium, so it isn't an escape hatch from figuring out monetization - knowing how you'll make money from the beginning is critical.
Check out this video by Dan Martell: http://www.danmartell.com/4rulestofreemium/
I'll summarize the decision points around freemium below:
1. There are 10M+ users in your market. 2. Free distribution will give you a competitive advantage. 3. You have a simple value proposition and process. 4. The marginal cost to service additional customers is near or equal to zero.
Answered 8 years ago
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