A whole bunch of subscription companies today offer a freemium option to entice users to try out their product. Most of the time, the majority of users remain on the freemium plan while a small portion convert to paying customers. Some of the more notable freemium subscriptions include:
The trick to a successful freemium model is to have enough users so that the small minority of paying customers can sustain your entire business in a whole new world of Subscriptions. The alternative is to find the right price point or strategy to convert more of your users to paying customers (think Whatsapp's $1 per year plan). That means you need to be very targeted and intentional with who you want in your paying customer-base.
How do you know when freemium is the right way to go? Read 10 questions to answer and 15+ freemium business models to learn from by download our ebook today!