Definition
A pricing model offering a free tier with limited functionality alongside a paid tier with full functionality.
Why it matters for growth
Freemium removes the initial purchase decision entirely, letting the product itself do the convincing before a customer ever pays.
Example
Slack's free plan works fully for small teams but limits message history, nudging active teams to upgrade once they hit that limit.
FAQ
- What is Freemium?
- A pricing model offering a free tier with limited functionality alongside a paid tier with full functionality.
- Why does Freemium matter for growth?
- Freemium removes the initial purchase decision entirely, letting the product itself do the convincing before a customer ever pays.
- What is an example of Freemium?
- Slack's free plan works fully for small teams but limits message history, nudging active teams to upgrade once they hit that limit.