[hpatel]

You are right. I was describing free - not freemium. Though, technically even freemium is an example of where a large number of people don't pay in the direct exchange. The monetization model divorces payment from the direct beneficiary - that's the key takeaway.

[anamax]

> The monetization model divorces payment from the direct beneficiary - that's the key takeaway.

No. Freemium divorces payment from SOME direct beneficiaries.

However, the total cost, and then some, is paid by other direct beneficiaries. Is your scheme any different?

Note that freemium doesn't always work. For example, a freemium automobile company is unlikely to work. Advertising supported "free to end user" automobiles won't work either.

So, how does your proposed model work? Be sure to explain when it works and when it doesn't. (If you claim that it works for every product/service, you're wrong.)