Lead Generation Through Freemium Offers

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Utilizing a freemium lead generation model may reduce the final cost required to earn new customers or clients. This happens through shifting the educational burden from marketing and sales teams to the actual end user.

As a two tiered lead generation system, freemium models often divide users by free tier or paid tiered. Users belonging to the free tier will experience reduced features or access while using the product, while paid tiered users have greater access to the full array of features available.

The ultimate goal of lead generation through freemium offers revolves around reducing the overall cost for customer acquisitions (customer acquisition cost or CAC). Many freemium models eliminate the need to pay for opening an account, which will clearly lower the commitment needed to start experiencing some of the features offered by your product.

Freemium models often reduce the spending that companies dedicate to traditional paid marketing outlets or to their overall sales processes. Freemium offers create the trust and provide the value that companies typically rely on highly trained (and paid) sales teams to convey when engaging leads.

By allowing a potential buyer to experience a free version of your product or service, you're providing value and building trust in the process. Many proponents say that the freemium period allows for natural lead generation as users learn about the value and power in your products by using them before buying.

After achieving success with your product, free tier users will eventually reach the limits of the free-level account and decide to invest in a premium account in order to gain access to the full set of features and value that your product provides.

Freemium offers are usually controlled through a variety of ways, which include feature limitations.

Other examples of freemium offers include ebooks, mini courses, full online courses, PDF forms and video lessons. These offers have proven to provide interested consumers with information and value about what your products or services provide and quite often lead to a sale.

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