freemium

Vocabulary Word

Definition

'Freemium' is a business strategy that offers core services for free while charging for extra features or benefits. It's like a music streaming app that allows you to listen to songs for free, but if you want no ads and better sound quality, you need to pay.

Examples in Different Contexts

Educational apps often follow a freemium model, allowing free learning modules while premium content requires a subscription fee.

Practice Scenarios

Creative

Scenario:

We have had a steady increase in the platform's user base due to the availability of free design tools. However, we need to highlight the value of our premium offerings more effectively.

Response:

We could design a user friendly comparison chart showing the distinctions between the free and freemium offerings.

Business

Scenario:

Our user sign-ups have significantly increased since we introduced the free version. But how can we incentivize users to upgrade to our premium service?

Response:

Perhaps, we could offer a limited time freemium upgrade, showcasing the benefits of the premium features.