Strategy

Freemium

Free tier with paid premium features

Definition

Freemium is a pricing strategy where the core product is free and premium features, capacity, or access are offered at a cost. It's a powerful acquisition tool but requires careful design — too generous and no one upgrades; too limited and no one stays.

📌 Example

Slack's free tier limits message history to 90 days and integrations to 10. Teams hit those limits and upgrade to paid — a classic freemium conversion trigger.