Let’s start by explaining what is “Freemium”: according to freemium.org “The word “freemium” is a combination of the words “free” and “premium.”
It describes a business model in which you give a core product away for free to a large group of users and sell premium products to a smaller fraction of this user base.
One of the most well-known examples of a freemium business model is Skype, which provides free computer-to-computer calling but sells voicemail, calls to landlines and other products.”

Freemium model is much complicated and with such a large number of assessments concerning it, we have assumed that it is possible for invigorating to take a discriminating approach and jump profound into why, a few organizations are extremely fruitful at utilizing the model while few organizations are not succeeding in it.

Evaluating is unpredictable. Unluckily, numerous entrepreneurs never provide for it perfect thought on it. Let’s dig deeper on this…
At the centre of the “Freemium” models are the ‘products’, which are being offered to the keen users. Most online purchasable services or products indicate us that users are experiencing well: an item that requires a time of utilization before the client can focus the quality they can determine through it.

Why Free is so great (until it approves otherwise)

I will explain it in a simple way; free is a passionate hot catch that quickly diminishes the mental hindrances for the customer. Free makes individuals feel that they don’t have anything “to lose” since numerous overlook time as a money-waste process.
From this viewpoint, free is a gigantic quickening agent of reception. The other side of this is that in the wake of using the item for nothing, it is tricky to get the customer to begin paying for it; the hardest part is to get your client to pay you the first cent (or penny!). It is the reason it is so basic to pick your premium peculiarities cleverly.

Models of “Free”

There are distinctive sorts of free methods. How about we examine the mainstream ones:

  • Totally Freemium model: give an adaptation of the item free of charge and charge a fee for alternate forms.
    Based on my experience the best way to go with it is to base your Freemium on value. The more a client uses the item, the more esteem she infers, the higher the exchanging expenses are, and sooner or later she’ll hit a utilization farthest point and believer to a paying client. Dropbox is a delightful case of this.
  • Give one product free of charge and then charge other product (usually with more advanced characteristics).
  • And last –but not least- is the “Free Trial” model. Give a free trial for X days and begin charging once the trial finishes. The issue here is evaluating what X is. On one hand you need to make a feeling of earnestness, and then again you require the client to see the quality in the framework. Note here that there is a lot of debate whether Free Trial is part of the Freemium model. According to Freemium.org is a totally different thing; I personally believe that is different yet quite similar.


The fact is that you can’t be totally certain which model will work best for your startup.
I would certainly suggest the Customer Development approach with which you can evaluate your Freemium scenarios simply by asking your potential customers “Would you pay $x for Yproduct? If yes, under which circumstances?” Their answers could obviously change your pricing model and that’s the most profound knowledge you could get before actually launch your product to a wider audience. In some cases though you’ll discover that the selected pricing model –freemium or not- is not being widely accepted by real customers out there but this is a whole different scenario hence a different post (so long good-night sleep!)
Actually that gives me the idea of writing about what model we selected to use on Picklist.me and why, what went well and what didn’t; yeap, a real startup case with all cards open on the table!


There are numerous elements to consider when you are assessing whether to utilize the Freemium model or not. Be that as it may, from all fruitful startups that employ the freemium model, one thing is in common: They all have amazing products. In the event that your product is not making extraordinary value for its customers, no strategy on the planet will make Freemium work.
But whatever Free or Freemium model you choose for your Startup always keep in mind that a low price from the begging indicates confidence that your product will create value for the customer.
After all, providing real value to the end-user is what matters the most.