Freemium
A pricing model where a basic version is free, with premium features behind a paywall.
What it means
Freemium gives users access to a limited but functional version of your product at no cost. The goal is to let users experience value before asking for payment. Done right, freemium creates a massive top-of-funnel and leverages the product itself as marketing. Done wrong, it creates a sea of free users who never convert and drain your resources.
Why it matters
Freemium works best when free users generate value for you even if they never pay - through word-of-mouth, network effects, or content creation. The key decision is where to draw the line between free and paid. Too generous and nobody upgrades; too restrictive and nobody sticks around.
What is a freemium model?
Freemium is a pricing strategy where the core product is available for free, while advanced features, higher limits, or premium support require a paid subscription.
What is the difference between freemium and free trial?
Freemium offers a forever-free tier with limited features. A free trial gives full access for a limited time (e.g., 14 days) before requiring payment.
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