Question 3: The creation of the Internet rapidly increased the ability of companies to succeed in

business with a freemium revenue model. This Application Assignment has two parts.

Part 1 is to identify a company that offer free products or services. For this company identify the

following:

• The company and what is provided free?

What services and/or products cost additional money?

Which of the following three types of free financial models do they represent and why: Direct cross-

subsidies, Multi-Party Markets, The freemium model.

In Part 2 you will take one of your own business ideas and imagine it with a freemium revenue model.

For your own idea please address the same points as in Part 1.

The company and what is provided free?

• What services and/or products cost additional money?

Which of the following three types of free financial models do they represent and why: Direct cross-

subsidies, Multi-Party Markets, The freemium model.