5. Freemium
! Free: ability to read ebooks, free and with non-intrusive
ads.
! Premium: ability to read ebooks, ad-free, even without
Internet connection. Price by subscription.
! Affiliation: we redirect traffic to your site or wherever
you sell your printed books.
7. Income model
! 24symbols income is based on advertising and
subscriptions.
! 70 % of this revenue is shared equally among the
total number of pages read.
70% Total Income Publisher's
Publisher’s = x
Income Pages Read
Total Pages Read
8. Why 24S
+no downloads
+flexibility (catalog)
+
Control +no exclusivity + Income
+audited +proved business model
+statistics +sales (printed books)
+SEO +virality
+recommendation
+Marketing
9. A Freemium Model for Books
! Combination of a free basic service with an
advanced service based on a periodic subscription.
! Free service permits to easily get a huge number of
users (no barrier of entry).
• Income source (ad-supported).
! No barrier of entry + high-quality service
+ interesting conversion factors = premium users
• Main income source.
10. Free / Premium
free
users
Conversion Rate
Delayed subscription premium
(test the service & engage)
time
11. How to get users
Direct SEO SEM SMM Mobile Emailing MGM
! User generation rate will vary according to:
• marketing campaigns,
• product (new features & apps. for specific devices),
• tablet/device penetration,
• catalog…
! … but it will spontaneously speed up if the number of
users reaches a critical mass.
12. How to get premium users
! Typical purchase funnel, but with a delayed behaviour.
• Conversion requires enough time to test & engage.
Visits
Registered
Time
Users
Premium
! Why to subscribe:
• Offline reading + Extended catalog + Ad-free + Other features.
13. How Pageview Price is determined
70% Total Income
Pageview =
Price Total Pages Read
! Income = Ads (20%) + Subscriptions (80%).
• Ads are not so efficient as an income source…
! Income distributed to publishers according to the
number of pageviews of each title.
➤ Pageview as the consume measurement unit in 24S.
14. How Pageview Price is related to
Conversion Rate
Conversion Rate
Goal: 10%
Pageview Price Pageview Price
15. How to manage a profitable Conversion
Rate
! Freemium models need time to get:
• Critical mass (enough number of readers),
• and a profitable pageview price (enough premium users).
! Initially focused on registered users, gradually shift to
focus on conversion rate.
• Detailed monitoring of subscription patterns (profile, speed)
to make business decisions that optimize it:
➤ Prices / Offers.
➤ Service differentiation for subscribers.
➤ New limitations for free users…
! Free service is still strategically interesting to get new
users (eventually new subscribers).
16. How to manage a profitable Conversion
Rate (II)
users
registered
+ limitations for free users
better Conversion Rate!
Premium Users
Conversion Rate =
Premium + Free Users
subscribers
+ value for subscribers
time
17. Typical misunderstandings
! “Ads are never a relevant income source”.
• Right… but freemium models are built to be profitable with
subscriptions, not ads (just to monetize free users).
! “It is more profitable to have 100K premium users than
22M free users”
• Right… but free access is the only fast way to substantially
increase the number of users, that eventually will subscribe.
• In other words, it is more likely to get 100K premium users with
a freemium approach than without.
18. Typical misunderstandings (II)
! “You don´t guarantee a minimum pageview price”
• Right… things need time to work out. Not much.
• Title discoverability increases from the first day.
• Backlist titles get a new income source.
• Bestselling titles can be initially limited to subscribers,
24symbols as an online marketing channel.
