Freemium

Freemium models (free + premium) are pricing strategies that combine a basic free version of a service with a more functional, robust premium (paid) version. The goal of freemium models is to use the free price to attract the largest number of potential customers in the hopes that they will become comfortable enough with the basic functionality and develop a desire for the more powerful premium version. In this article, the author explores freemium models and how they can be successful.