The Dropbox is charging 2 dollar per GB which is equal the price charging by ICloud but greater than the Google Drive and SkyDrive. In addition to this the company should educate its users about the product and it could also help to increase the number of paying users.

The company is using the referral marketing strategy and it works brilliantly and increased the number of users significantly but in order to increase the number of paying users, Dropbox should increase its number of users by adopting different marketing strategies like Trojan horse. In order to deal with the problem company should increase its number of users because according the freemium pricing strategy if the company wants to earn revenue from 1 million users then it should have to increase its number of users to 1 billion. The company is currently facing the problem that approximately 96 to 98 percent of individual users is using its services free of cost and not using the premium products. According to this strategy the users are able to use its basic services and will charge a premium upon additional services.

Dropbox is currently using the freemium pricing strategy.

Dropbox upgrade cost