December 03, 2008

Let someone else pay for me!

Image representing TrialPay as depicted in Cru...Image via CrunchBase, source unknownShareware, content subscription and SaaS models all leverage the scale of the internet to offer very low prices. However, paying over the internet is something that a lot of people just aren't willing to do - even if its $3 a month for a service.

Most online companies which use a freemium model in which they give as much as possible away for free to generate traffic and charge for "premium" content and services typically have conversion rate of 2-5%. This means the vast majority aren't willing to part with the cash.

TrialPay has a interesting solution to the problem. It is a unique alternative payment platform that enables customers to pay for one item by trying or buying something else. You buy a typically higher value product else where and recieve the low cost service as a "free gift". To secure the sale of a TV for example, Sony is willing to buy you a SkypePro membership to sweeten the deal. The cost is low and its a form of marketing in which you pay when you make the sale.

This platform is really about partnerships. Its about teaming up to create more value than going it alone. But its a great way to think about positioning free products in a way that other people pay the bill.
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