The New York Times' recent piece on Evernote inadvertently cracked open an important question in the "freemium" discussion: What's the difference between a user and a customer?
The language attached to freemium business models requires specificity because these businesses associate expectations with distinct user groups. With freemium, there's a vast canyon between free access (users) and pay access (customers); they are not synonymous. That's why the following clarifications are necessary:
User -- A visitor who accesses a site, product or platform, but does not pay. Example: I use Dropbox, but I don't pay for the top-tier services (yet ...)
Customer -- A converted user who now pays for premium access or services. Example: As my storage needs increase and I become more reliant on Dropbox, I'll likely convert into a paying customer.
I realize this entire post teeters on nitpicky semantics, but heated debates require clear boundaries.
Sidenote: I highly recommend the Times' Evernote story. It's a great representation of the opportunities and obstacles that come with freemium models, and it has actual numbers.

Leave a comment