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

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.

Tech

Scenario:

Although our app is getting positive feedback for its free features, we need to brainstorm ways to encourage users to opt for premium features.

Response:

Maybe we can introduce a freemium model, which would allow users to test the premium features for a month.