There are many different business model but the one that entice me the most would the model of Freemium. Most of the phone apps that we own are free of charge but to further improve experience of the application, add ons are available. For mobile games, these add ons either upgrade your character to be stronger or to be more attractive.
An example would be a game i have been playing for 3 years, Mobile Legends Bang Bang, it is a free to play game, but in order to obtain more characters and make your character more attractive, you would be require to buy “diamonds” using cash.
Everyone would like to look better even in game character thus games would release new character skins to constantly let gamers upgrade themselves. Personally i upgraded a few of my characters from the mundane characters to a more attractive character by making in app-purchase.
One of the biggest application upgraded that happened late last year would be YouTube improving their service into having a premium, which known as YouTube Red. Some of the services provided includes blocking advertisements, watching video offline and switching of apps without worry.
Friends around me have been complaining about the non-stop advertisement on Youtube. It’s definitely bearable if you just have to wait for 5 seconds and skip it but definitely not for those that is 25 seconds long. People go to YouTube expecting to watch a video immediately, no pause no waiting. Why not pay a few dollar to save time? With the new Youtube Premium that, they will not see any advertisement at all. I believe that is why many people are willing to pay a small amount just to enjoy the video they love to the fullest. Besides, YouTube offers student price where students pay $6.99 per month instead of $11.99. This greatly engage students to pay a small amount every month to get the maximum experience of YouTube. Not only that, YouTube Premium covers everything! Downloading videos up to 1080p resolution and watch it offline , also switching apps without worrying your song will be cut off. It combines all services in one app, how convenient?
I certainly believe that everyone have a few applications that they cannot live without, it not only brings entertainment and also keep them connected to their love ones. I personally subscribed to Youtube Premium, Spotify Premium and Netflix to experience better quality and I feel that paying a few dollars to achieve all these conveniences is worth it. What about you guys? Have u guys subscribed? Why not? Feel free to share feedback thus we able to understand more about freemium model.
Mark Blog 
Hi Mark, I play MLBB too and I completely relate to how freemium model games are effective in generating revenue. I am guilty as well when it comes to spending money on online games and it has been this way ever since I was young. This revenue model works perfectly for gamers like us as it triggers the tendency of comparison with others using its addictive nature. Do you think MLBB will still be as successful as it is today without this revenue model?
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Hi Jia Wen, i totally am an addict as well. If this game requires money to download, there will be no motivation for someone to just buy the game because they have no idea of what is the game and no one will spend money on something they have no prior knowledge on. With a better understanding of the game comes the cosmetics and “extra power” that people will have the motivation to be prettier and “stronger”.
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Hey Mark i agree with you on the part you mentioned about everyone would like to look better even in game character thus games would release new character skins to constantly let gamers upgrade themselves. It makes me want to buy skins on MLBB as well 🙂 thank you
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Hi Brian, to me MLBB has became part of my life therefore I need to play at least a game every day, this is what you may call an addiction. With this addiction, I have set aside $30 every month to upgrade my character, this shows success of the freemium model as I feel inclined to purchase virtual items.
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Hey Mark, i am also a subscriber of Spotify Premium too because i feel that the benefits and convenience like saving on mobile data by downloading the music via Wifi, so when i am out, i can be at offline mode to enjoy the music i have downloaded outweighs the $9.99 i pay every month. Therefore, i feel that every freemium model should market themselves in a way that the benefits and convenience brought is more than the cost of subscribing to the freemium model.
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Yes Ang Loh, one of the most attractive features is that consumers can deactivate their premium at any time without a penalty. One way for consumers to better understand the premium features is to give free trial period. Netflix gave 1 month free trial to all their consumers thus their subscribers skyrocketed from 77 million in 2016 to 167 million in 2019.
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Hi Mark, like you, I have also subscribed to Spotify Premium as it is extremely convenient to use and I can easily find songs and download on the go. Gone are the days where we have to download songs online and transfer to our phones! I am also guilty of spending money to upgrade my game characters online! I really love the freemium model of business as we don’t have to pay a single cent yet we still get to have a taste of what a premium model would be like minus the premium features.
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Hi Gladys, those days were tough when we need to download song by song into our music player. This application also introduces you to the music of the same artist. They also create a personalized playlist for you with a huge variety of songs to choose from. Definitely Spotify premium is the way to go!
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Hello Mark, I personally subscribe to Spotify Premium and Netflix because it is so convenient. In fact, these streaming platforms can collect your data and track your activities. Are there any negative impacts of this freemium model?
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Hi Jaslyn, there is a certain negative impact on the freemium model for the company’s point of view. Freemium attracts the wrong customers. The first and biggest problem with freemium is that it attracts the wrong type of customers. When you build your business on the freemium model, it is possible that you create a large base of users. Unfortunately, these users are using your product because it is free.
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