Definition
A freemium model gives a basic version of a product away for free, permanently, and charges for advanced features, higher limits or more users. It differs from a free trial, which gives the full product for a limited time.
Trade-offs
- For: low friction to start, word of mouth, a large pool of potential customers.
- Against: free users cost money to serve, and many never upgrade.
What decides success
Where the free plan ends. It should let people get real value and run into the paid features as they grow. Measure it with the freemium conversion rate.