Freemium
Freemium is a business model where a product or service is offered for free with basic features, while premium features or advanced functionality require payment. It is commonly used in software, apps, and online services to attract a large user base and convert a portion into paying customers. This model leverages free access to drive adoption, with monetization through upgrades, subscriptions, or additional services.
Developers should learn about Freemium when building consumer-facing software, SaaS products, or mobile apps to understand user acquisition and monetization strategies. It is particularly useful for startups and digital products aiming to scale quickly by lowering entry barriers, as it allows testing market fit and gathering user data before implementing paid tiers. Knowledge of this model helps in designing pricing structures, feature segmentation, and retention tactics.