Monetization

The “Free” Illusion There is no such thing as a free app. If an app is “free,” it is one of two things: You are the product (they are selling your data/ads). It is a marketing channel for a paid product (Freemium). Freemium is the dominant business model for modern B2C SaaS. But getting it right is arguably the hardest challenge in product strategy. The Economics of Generosity Why give your hard work away for free? Because Customer Acquisition Cost (CAC) is expensive. Running ads on Facebook and Google to get someone to download a $5 app is often unsustainable. ...

The User Frustration We have all been there. You walk into a PVR or INOX on a Tuesday. You are happy because you snagged a ticket for just ₹200. You walk to the concession stand, order a regular popcorn and a Pepsi, and the bill comes to ₹650. You feel cheated. You wonder, “How can puffed corn cost three times more than a multi-million dollar blockbuster movie?” As a consumer, it feels like price gouging. But as a Product Manager, if you look at the P&L (Profit and Loss) statement, you realize it’s actually a brilliant execution of Platform Economics. ...