Freemium

The freemium model is a business strategy where a company offers a free version of its product with limited features, while also providing a paid version with additional features. The goal is to attract a large number of users with the free offer, then encourage them to upgrade to the paid version for a more complete experience.

How does the freemium model work?

Users can access the basic features of a product for free. Then, to unlock more advanced options or enhance their experience, they can choose to subscribe to a paid premium offer. This model is often used in mobile apps or online software, where the free version serves as an introduction to the full offering.

Concrete example

For example, imagine a project management app. The free version would allow users to create tasks and collaborate with a limited number of colleagues. If the user wants access to more advanced features, such as managing multiple projects or integrating with other tools, they would need to upgrade to the paid premium version.

Why use the freemium model?

The freemium model is effective for attracting many users from the start. It also allows people to try the product with no commitment and then convert satisfied users into paying customers. It's a profitable model at scale.

Need advice on implementing a freemium model in your startup?

If you want to learn more about how to implement the freemium model in your business, contact us via the contact form on our website. We would be happy to help you develop your strategy.