Could freemium be a good model of earning profit from user generated content services?
Let's take same hard example - www.trapster.com. It's a mobile phone application for exchanging information about events on the roads. In this case the service is free, but are you able to come out with an idea to implement some business model into it?
Take into account that:
What do you think about it? Do you know any examples of freemium model implementation in services based on user generated content? The cases of both successful and failed implementations would be helpful.
Depending on the business model, there's lots of examples.
Essentially all of the geo-coded mobile apps fall into this category. People participate ("play") for free; the value comes on the flip side offering deals and in market research.
The abstract business model is:
I wouldn't say this is an easy business model, because it's hard to get critical mass of users for anything (even if free) and because it's harder than you might think to "sell data" or otherwise value the behavior of the users.