Ideas|Products|Startups|VCs

BizHobNob, is an global online platform that enables people to find service providers they can *trust*, based on recommendations from within their communities and friends. BizHobNob is a network of service providers. It can be used by anyone to find an appropriate service provider for their business or personal needs. BizHobNob is deeply connected with existing social networks like LinkedIn, Facebook and Twitter. Trust is emphasized by recommendations from family, friends and communities.

Very often, when looking for a service provider, we either call up our friends for recommendations or turn to the yellow pages. While the former is a very trusted model, but limited in scale, the latter scales very well, but is untrusted. BizHobNob seeks to fill the gap in between.

Bizhobnob is a Bangalore based startup and was launched in Beta stage in December 2010. Bizhobnob is founded by Sapna Chandiramani, an alumnus of University of Rochester and also a Yahoo Veteran where she headed global engineering team and hold multiple patents.

Bizhobnob is an invite-only platform, it thrives on referrals. Popularly referred to as a “LinkedIn for Service Providers”, it does not seek to build another social network, but to simply leverage existing ones.

While the platform is free to use for anyone looking for a service provider, and even for service providers looking to list themselves on BizHobNob, the latter can benefit greatly from the paid subscription, priced attractively at Rs. 100/month!

Bizhobnob indirectly competes with Yellowpages like JustDial and classified sites like Craiglist etc.

So, the next time you are seeking a service provider – be it a party planner for your kid, or a web designer for your firm, you know to look no further!

-Hitesh, vcBytes.com

Freemium is a business model that works by offering basic Web services, or a basic downloadable digital product, for free, while charging a premium for advanced or special features. In simple words Give your service away for free, possibly ad supported but maybe not, acquire a lot of customers very efficiently through word of mouth, referral networks, organic search marketing, etc. then offer premium priced value added services or an enhanced version of your service to your customer base.

Things to consider before implementing Freemium business model-

• Freemium may work for u if u have: great long term retention rate, product value increases over time, low variable costs.
• Create a business service with business processes which is highly robust, so it is scalable and doesn’t need large numbers of people to grow.
• Analyse how user use your system and assess the data, you will come across gaps in the system which you can address through premium service and it means more sales.
• Make sure you show them the value of features and how they can leverage features coming with premium subscription.
• Have reasonable pricing for premium subscription, if its too high competitors can cause dent to your business. High free user base tends to keep away the competition.
• Tease users with data on premium stuff and thus continue to entice them.
• Dont try to target 40-50% user base to convert into premium users, 10% conversion is too good rate.