Freemium

What is the Freemium Model?

The freemium model is a business approach where a basic product or service is offered for free, with the option for users to upgrade to a premium version with additional features, content, or benefits. The goal is to attract a large user base with the free offering and convert a portion of those users into paying customers.

Advantages of the Freemium Model

• Wide User Reach: Free access attracts a larger number of users.
• Upselling Opportunities: Premium features can be marketed to free users, encouraging upgrades.
• Lower Barriers to Entry: Users can try the product risk-free before committing to a paid plan.

Related Terms and Concepts

Monetization, subscription model, user acquisition, conversion rate