Freemium

What is a Freemium Model?

Freemium is a business model that comes from the mixture of two concepts: free (free) and premium. It is the system through which a company grants interested users one or more services absolutely free of charge, but at the same time offers the option of enjoying better alternatives if they dare to pay for them.

This system is gaining popularity due to the combination of free and paid. Using it, companies can determine a connection with consumers and convert them into customers in order, based on forging a relationship of trust with a service without quality costs, to increase their loyalty and make the transition to the payment system easier. Of this dynamic, those who take the final step do so convinced of the quality that awaits them, so they do not hesitate to stay with the brand for as long as necessary.

It is seen many times with free computer tools and their paid counterparts, with antivirus and with a myriad of software that currently travels on the Internet; even though it is also common to see it in absolutely different sectors due to the high capacity of improve engagement of the company with the audience.

It requires maintaining a constant quality and raising it with a better or, at least, more extensive offer to convince consumers that it is important to highlight paying. However, if well considered, the freemium strategy is highly effective when it comes to improving the income of any company because it achieves a higher rate of loyal customers to the brand.

What is a Freemium Model for?

The Freemium model serves to engage the public in the best way, offering them something for free, and subsequently generate enough interest to convince them that it is important to highlight paying for the service provided or for those improvements that arise at the time of checking out.

It is a very good way for a company to show its benefits to consumers and for them to see first-hand to what extent a product or service is of quality. In the long run, it is also a more than adequate way to gain customer loyalty with both a qualitative and quantitative initiative.

Examples of Freemium Models

There are countless platforms that use the Freemium model today, mainly when we look at the digital sector and the Internet. From well-known names like Netflix or Amazon even others much more unknown offer free samples to later place the payment wall at the time of facilitating the enjoyment of more advantages.

In the following link you can see several well-known cases:

Success examples of the freemium model.