freemium-model

Vocabulary Word

Definition

The 'freemium model' is a pricing strategy used by businesses where they offer basic services free of charge while providing additional services or features at a cost. It's a mix of 'free' and 'premium', hence the term 'freemium'.

Examples in Different Contexts

In the software industry, the 'freemium model' offers basic services for free while charging for advanced features. A software developer might describe, 'Our app uses a freemium model to attract users with free functionalities, then upsells premium features.'

Practice Scenarios

Creative

Scenario:

On our streaming platform, we want to encourage more users to subscribe. How can we make the subscription look appealing without diluting our free offerings?

Response:

Implementing a freemium model may be the way to go. We can promote the benefits of the premium subscription over the free one to allure users.

Tech

Scenario:

This new app we're developing offers a broad range of features. How can we monetize them without discouraging new users?

Response:

I suggest leveraging the freemium model. We can allow free usage of basic features, and put premium features behind a paywall.