Freemium Model

The Freemium Model is a pricing strategy where a SaaS company offers basic features of its product free of charge while charging for advanced or premium functionalities. This approach lowers the barrier to entry, allowing users to experience the product before committing financially.

Freemium models can drive rapid user adoption and create a large customer base. However, converting free users to paying customers requires a compelling value proposition for the premium features. Balancing free and paid offerings is essential to ensure profitability and sustainable growth.