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Two-sided market strategies

         Business Models




      © Pujol Enterprises LLC, http://nicolaspujol.com
Model X: cross subsidy
One-sided model, but shares some dynamics with two-sided markets



                            Product A (free)
                                                                   Inextricable bond
                            Product B (paid)
                           Immediate or deferred
                              consumption


       Buyer                                                        Seller


                                 $ Payment




                © Pujol Enterprises LLC, http://nicolaspujol.com
Model 1: Platform

          Time &                           Platform service
         mind share                             fee P(B)


User                        Platform                          User
 (A)                        company                            (B)


       Free good P(A)
           to user
                                            A-B interaction




       © Pujol Enterprises LLC, http://nicolaspujol.com
Model 2: Freemium
                             Mind share


                              Free good
 Users                           (A)
                                                                Company



Conversion
   rate
                           Premium good
                             (A+, or B)


                           Payment for
 Buyers                   premium good




             © Pujol Enterprises LLC, http://nicolaspujol.com
Freemium differentiation alternatives
   FEATURE DIFFERENTIATION                                  TIME DIFFERENTIATION


         RELATED (B),                                                       Beta version
         SAME BUYER                                   Stable version            (A)
                                                         trial (A)
                                                                             Enthusiast
                                                                             version (A)
            CORE (A+)
                                                                 Stable version (A+)
       CORE (A)
                                                         Immediate         Deferred data
          RELATED (B),                                  data release        release (A)
       DIFFERENT BUYER                                      (A+)




                  © Pujol Enterprises LLC, http://nicolaspujol.com

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OLD DRAFT Two-sided market strategies: a complete view of platform and freemium business models

  • 1. Two-sided market strategies Business Models © Pujol Enterprises LLC, http://nicolaspujol.com
  • 2. Model X: cross subsidy One-sided model, but shares some dynamics with two-sided markets Product A (free) Inextricable bond Product B (paid) Immediate or deferred consumption Buyer Seller $ Payment © Pujol Enterprises LLC, http://nicolaspujol.com
  • 3. Model 1: Platform Time & Platform service mind share fee P(B) User Platform User (A) company (B) Free good P(A) to user A-B interaction © Pujol Enterprises LLC, http://nicolaspujol.com
  • 4. Model 2: Freemium Mind share Free good Users (A) Company Conversion rate Premium good (A+, or B) Payment for Buyers premium good © Pujol Enterprises LLC, http://nicolaspujol.com
  • 5. Freemium differentiation alternatives FEATURE DIFFERENTIATION TIME DIFFERENTIATION RELATED (B), Beta version SAME BUYER Stable version (A) trial (A) Enthusiast version (A) CORE (A+) Stable version (A+) CORE (A) Immediate Deferred data RELATED (B), data release release (A) DIFFERENT BUYER (A+) © Pujol Enterprises LLC, http://nicolaspujol.com