Why the Freemium Model Often Outperforms Premium-Only Products

[Nomad]

The freemium business model means you offer a limited version of the product/service for free and charge subscription fees or one time price for upgraded version. This method of product/service pricing has proven highly lucrative especially in digital products and services. Entrepreneurs can use this model by ensuring the free tier delivers genuine value, thus, the users are encouraged to buy premium version. Have you used this pricing model?

 

[Augusta]

Freemium model, offers a basic product or service for free and charging for premium features, often outperforms premium-only products because it attracts a larger user base,

 

[SilverLance]

It's because it makes it easier for people to try the product, which helps attract more users. With a larger audience, companies can encourage more interaction, gather important data about user preferences, and benefit from recommendations made by satisfied customers.

 

[Trush Jodie]

I don't think the freemium model does better, especially for products that are considered to be more of luxury.

 

[Springtime]

The Freemium model allows buyers to try the product at a low cost. And if s(he) likes it, s(he) can always upgrade to a premium version. This is popular because customers are given a choice.

 

[SilverLance]

The Freemium model allows customers to experience the product's value without a hefty financial investment, which helps to lower the perceived risk in their buying choices.