Freemium
Freemium is a business model that offers a free basic product to attract users while generating revenue from paid premium features or services.
How it works
This model lets users experience a product's core value for free, lowering the barrier to entry. When users come to rely on the product or need more powerful features, they can choose to upgrade to a paid version. For businesses, it is an effective strategy for acquiring users, building brand awareness, and ultimately turning a profit.
Examples
- 1.Note-taking apps like Notion offer a free plan for personal use, while team collaboration and advanced features require a paid subscription.
- 2.Many music streaming services (such as Spotify) let users listen to music for free with ads, while removing ads and enabling offline downloads require payment.
- 3.Zoom's video conferencing software offers free 40-minute meetings, but longer meetings and enterprise-grade management features require purchasing a license.