Fintech Spotlight: Beyond Freemium, Create a Free Service and Sell a Product

[kreslik.news]

Shaking up the tech world this month has been the story unfolding around Zenefits. A provider of HR software, Zenefits allows firms to aggregate company payroll, benefits and insurance information within one platform for efficient monitoring of the data. The company would then upsell their non-paying clients of the free software with insurance services. The business model, which is expected to generate $60 million in 2016, experienced exponential growth, leading Zenefits to ‘unicorn’ status as they closed $500 million in funding with a $4.5 billion valuation last year.

However, like many other fast growing startups, the company’s growth came at ... (read more)