Freemium

Freemium is a business model, sometimes referred to as Freemium Model, where a product is offered in two versions – a basic free version and a paid version with enhanced features. It is an effective way to acquire customers by offering the free version without any commitment to upgrade to the paid version.

The freemium model encourages potential customers to try the free version of a product without any commitment and risk. This increases the chance of them upgrading to the premium version as they become more comfortable with the product and find more value in the advanced features that the premium version offers.

This model is also used by many software businesses as an effective way to acquire new users. The free version of the software can be used by anyone without any restriction and it creates more engagement and trust. The premium version of the software offers advanced features, such as access to more data or technical support.

The freemium model also allows businesses to offer discounts and promotions to customers who upgrade, which can be a great way to boost revenue and long term customer engagement.

A great example of the freemium model is the popular photo editor software, Adobe Photoshop. Adobe offers a free trial version of the software that can be used for a limited time, after which users must purchase the premium version of the software. The premium version offers several advanced features and tools that are not available in the free version, such as more powerful editing tools and filters.

The freemium model is an effective way for businesses to acquire and engage potential customers. It provides users with an opportunity to explore and test the product before committing to upgrade to the premium version. Businesses can use the freemium model to gain more customers, boost revenue, and create loyal customers.