FreedomPop, the free mobile service provider, has been able to garner millions of dollars in funding in recent months. The new funding has aided FreedomPop in both extensive domestic and international expansion plans. Also, the cash infusion has quelled rumblings that a sale of the company was going to take place.
Besides the acquisition of millions of dollars in funding, FreedomPop’s unique business model has spurred its growth cycle. They have done it by utilizing one of the most powerful four letter words: free. Since their basic service is free that not very well known company can pick up customers without a huge marketing expense. Of course, the company could not survive if all of their customers just stayed with the set number of data and space contained in the free service. For a reasonable set price the company offers additional data and space plus several other valuable add-ons that creates their profit margin. In the United States the conversion rate from free customers to paid moves from 45 to 55 percent.
Another thing that fueled FreedomPop’s growth has been the flexibility of its business model and platform. The company uses the Sprint network primarily, but it has also partnered with 25 other networks throughout the world, including cable companies that can absorb FreedomPop’s technology also.
The company has also been able to be flexible when it comes to branding.
As for future plans, the company is hoping to expand into further international markets to augment their already successful UK launch. They want more growth in the USA, and have new products to introduce.
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