Business Models

Hi Beniso friends,

I would like to share some biz models which are popular in some major online service providers 

such as Microsoft or Udemy and so on.

1. Try and Buy model

As you know Microsoft's main solution is Windows and Office.

Recently Microsoft is focusing on cloud biz and they released Office 365 service via Cloud.

Office 365 provide reasonable price based on usage period 

Basically, Office is too expensive for students or younger people.

So they provide free services for universities and high school and so on.

Why?

Because the students will be familiar with Offices, they will use office 

again when they will get job or have their own biz. 

So Free services for juniors and students are good strategy to get future customers.

And they will also provide one month free by credit card.

Any person can try one month free Office 365 and they can cancel anytime by one month.

When I see beniso service table, there are $9.99 and $19.99 premium and Professional model.

Commonly, this price is not easy to make a decision to use or not.

At this time, Try and Buy service can be considerable model.

Of course, some customers will use the service only one month and leave

but some customer can stay if they will be satisfied with your services.

And sometimes, some customers missed end of free service date. ^^;

2. Discount model

This price strategy is very common model.

But Udemy use this price strategy very frequently.

Why? Because digital contents is no Depreciation per usage and unlimited.

When new digital video content is available, the cost is same per one or per one thousands.

So they can reduce price to attract more customers.

Even though the the profit is small, if many customers use the contents, they can generate huge revenue.

And additionally, this price strategy is more effective if there is time-limit condition such as

80% and 90% discount by today or 24 hour.

So If beniso's contents will be enough, this kind of price model can be considerable.