Background: Zoom - the video communications platform - was the hero of 2020, seeing us through lockdowns...and becoming the butt of all memes. Can ya see my screen? Paul, you're on mute again mate.

What happened: Zoom was downloaded more than 485 million times last year...but (sadly for Zoom) the majority of its downloads came from its basic users - aka, the freeloaders.

What else: Zoom has now revealed it's trialling an advertising program that will show ads to users on the Basic tier. Ya know, gotta make a buck outta these leeches. It's a pretty massive change for Zoom, but they say it's necessary to support future investments.

So what's the key learning?

💡Over the last 10 years, the freemium business model has exploded. Freemium is the model where some services are provided free of charge, but more advanced features must be paid for.

💡Zoom has relied heavily on its freemium model to attract users, but it ain't easy being free. The reality is, freemium companies typically only convert between 1% and 10% of free users into paying customers.

💡After years in the free space, Zoom realised it needs to start monetising its basic users by making them the product (aka advertising to them). Free users can still use the platform for free, but Zoom can make a lil bitta cash from them too.