Freemium Model
The freemium model is a business strategy where a product or service is offered for free with basic features, while premium features or enhanced functionality are available for a fee. 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, gather user data, and upsell to premium tiers.
Developers should learn about the freemium model when building or marketing software products, as it helps in user acquisition, retention, and monetization strategies. It is particularly useful for startups and SaaS companies aiming to scale quickly by offering a free tier to attract users and then converting them through value-added features. Understanding this model aids in designing pricing structures, feature segmentation, and analyzing user behavior for business growth.