Don’t Be A Free User

This is an interesting take that I’m not sure I agree with. On the one hand, I absolutely support independent developers wherever I can by buying apps and clicking on web ads. However, communities and apps like Instagram wouldn’t be as popular if they cost $1.99, or if they were covered in ads.

Gary Vaynerchuk said it really well at the 2008 Web 2.0 Expo:

You have to have a business model. I mean, getting a crapload of users and then flipping it is not a business model. Make some cash along the way.

Then he talks a little about the “freemium” business model, where there are certain premium features for paid users (no ads, higher quality x, more space, etc.), and today, I can’t help but wonder why Instagram doesn’t follow this model. Why not have a standard archive amount of the past 90 days, and anything beyond that requires the $1.99 app? Why not offer a paid app with more filters, with more customisation options?

Unfortunately, I think a lot of these little apps along the way are just trying to gain a broad user base and then sell out to the highest bidder. How often does that actually work, though?