Title: The More You Give the More You Get - Shep Hyken
Headings: The More You Give the More You Get
The More You Give the More You Get
Content: He proved this with research. When the servers at a restaurant bring a check to their guests without a mint, the diners will tip according to their perceptions of how good or bad the service was for that meal. When servers add a mint to the check, the tip jumps up 3.3%. Two mints and the tip jumps to roughly 20%. Seth explained that the Freemium business model is based on the law of reciprocity. Give someone something for free, and the customer reciprocates by spending money. And, it’s much bigger than an after-dinner mint. For example, Spotify and Pandora have created streaming music empires by giving away free versions of their product, which is financially supported by advertisers. However, both offer an upgrade to a paid version without advertising. Some of their customers pay, which results in approximately 50% of their revenue.