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Yet another series of debates are occurring in the ether about whether freemium or pure subscription billing works best as a model for digital businesses.

I continue to scratch my head since these are almost never "either-or" questions, even within a specific industry. Companies need to make these decisions based on:

• The customer experience,
• The expectations set with the free and paid-for service,
• The costs of managing a freemium model,
• The actual quality of the product.

Our experience in working with clients in every type of digital market tells us that the original business model decision will often change over time in response to market and competitive shifts.

For some additional insights into the economics of free in a digital business, check out this archived webinar. We also offer a best practices guide that discusses the pros and cons of various business models, including subscription billing and freemium.