Distinction between demo, free trial, and freemium models
While freemium and free trials are self-service models that allow customers to explore on their own, it’s vital to keep in mind that a product demo often entails more direct coaching and engagement with a representative.
Which business model to use—whether “freemium,” “free trial,” or “product demo”—depends on a number of variables, including the nature of the product, the target market, and the corporate goals. Here is a description of each model and when it would be appropriate to use it:
- Freemium: When your product offers distinctive premium features that clearly differentiate it from competitors and add value, the freemium business model makes sense. It may work well for growing a sizable user base, raising brand recognition, and producing network effects. When your product has a collaborative or viral component that profits from widespread user adoption...