Or alternatively, give a greater value to the customers (give them more than they could have paid for with the “small fee” and yet not incur any monetary expenses yourself.
For example: You invite a friend. He/She pays for Alpha for a month. You get Free Alpha for a month as well. And you can do such thing with unlimited friends but can only get 1 month per friend. This way you could hypothetically keep perpetual Alpha for free as long as you refer 12 paying friends a year and that is £100-120 revenue a month at a physical cost of next to £0 but a £10 giveaway value a month to that very friendly individual.
If it was to be a one-off occasion for an individual, Freetrade’s incremental revenue is still £10 per person with £0 cash expense (but you provide £20 in value, ultimately at a 50% discount).
Of course, they may be a risk of “let’s use their generosity and revert back to Basic” kind of people, but people are equally likely to keep their Alpha if they enjoy it. Particularly given future-coming enhancements of it.
Spot on. That is another risk to mitigate and cooperation may work out more beneficially than pure competition.