The Complete Guide To Freemium Business Models

The idea of offering your product or a version of it for free has been a source of much debate. Pricing is always tricky. Unfortunately, many entrepreneurs don't give it enough thought. They will often copy the pricing strategy of similar products, base their decisions on pompous statements made by "experts” or rely on broken rationale (we worked hard so we should charge $X). Free is even trickier and with so many opinions about it, we thought it would be refreshing to take a critical approach and dive deep into why some companies are very successful at employing the model while other companies fail. We've looked into economics academic papers, behavioral psychology books and strategies that worked for companies to come up with the key concepts below.