Glossary

Freemium

Freemium is a business model where a basic version of a product is free, and customers pay for extra features or higher limits.

Freemium combines "free" and "premium": users get free access to a basic version of a product and only pay when they need more advanced features, higher limits, or extra capacity.

The model lowers the barrier to getting started enormously, leading to a large user base. The challenge is converting free users to paying ones: typically only a small percentage converts.

Customer service plays a key role in freemium conversion: users who are well helped and experience the product's value during free use demonstrably switch to a paid plan more often.

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