Dropbox Current Business Model

Dropbox’s current business model

Freemium

Dropbox utilizes a freemium model that offered both free and premium accounts. To be clear, the users can get the basic services for fee, and they can get more features, functions or storage for a fee. Initially, any one can register a Dropbox account for free to become a user. Each Dropbox user can use 2GB storage space to store any files such as photos, videos, music and Microsoft document files etc. Through any devices such as laptops, Mac, iPad, iPhone and Android phone, files can instant synchronization and accessed without internet.

With a sharing folder, user can easily share data with other people, even if people do not have Dropbox account can also access the shared file by clicking the share link. User no longer have to worry about files will disappear, in addition to historical versions stored function, when a user accidentally deleted files, he or she can recover accidentally deleted files within 30 days.

When upgrade to Dropbox Pro, user need to pay $9.99 per month and get 1TB (about 1000GB) storage space. In addition to all the features of the free version, Dropbox Pro’s user can set a password to protect files and decide who can access the file. In summery, Dropbox has a number of core values such as easy of use, sync files across different devices, security, file recovery and simple sharing, thus, more and more people begin to understand the convenience of Dropbox, which increased the number of users. [1]   

Organic growth

Unlike traditional companies to buy ads to promote products, Dropbox promote their product through word-of-mouth referrals and viral marketing efforts. Existing users recommend their friends or family to use and each person may bring an additional 250MB of storage space, up to 8GB of storage space ceiling. Each user has the opportunity to increase the use of space, and bring more users for Dropbox.

Dropbox for Business

Dropbox also operates a number of enterprise users, providing a large number of enterprise storage and backup solutions. Enterprise version of Dropbox has the ability to central control, that’s main the company’s IT department can keep track of usage within the company. For employees, Dropbox provides different account of right management, the company’s public account and their private account used separately without confusion.  

Minimum viable product

In product development, the minimum viable product (MVP) is the product with the highest return on investment versus risk. [2] A minimum viable product helps potential users and entrepreneurs start the process of learning as quickly as possible. With simple demo such as paper prototype, business model canvas, landing page, slides and video, people can quickly get the idea from the product or service. Moreover, product developer can directly get feedback from their audience, and learn about customers with the least effort. Therefore, product developer can continue to adjust their products before the official release of the product.