You can also opt to limit the capacity for free customers

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If you’ve recently started out with the hopes of gaining brand awareness or acquiring new customers, a freemium model could serve you well. On the other hand, if you mainly want to generate revenue and increase conversion rates, other viable business models can help you achieve those goals. Freemium also thrives when used with particular services and products. High-quality products that attract a wide customer base while remaining low on cost are perfect candidates for a freemium model. Services that people use on a consistent basis, whether for work, entertainment, or creative hobbies, also do well.


Since you would put the emphasis on customers engaging with your product on their own, without additional customer service, also consider whether your product is intuitive to use. What Are The Best Examples of Freemium Models? If you believe that  Denmark Phone Number Data a freemium model would benefit your business, you have different options you can pursue depending on your product. The most traditional choice puts limits on available features, as we’ve discussed before, and users have to pay for supplementary services. to use your software, which works well if you offer storage space. If you provide services to other companies, you can create tiers for your products that focus on the size of the business using them. Maybe the small businesses choose the free option, and as their brand grows, they will feel the need to upgrade to premium services.



Another popular option incorporates ads as a way to generate revenue. The premium services, in this case, include an ad-free experience. Examples of Companies that Use Freemium Model A lot of software, gaming, and internet-based companies opt for freemium business models, including Spotify, King, Hinge, Slack, Asana, and Dropbox. Spotify might count as the most successful one, with an incredible 45% conversion rate. For comparison, Dropbox boasts a 4% conversion rate among its users. With Spotify, the difference between their free and premium services feels like night and day. Free users can stream most albums, playlists, and certain radio stations on shuffle play, with ads every few songs. These users cannot skip to specific songs they like, a limitation that proves effective at reminding people what they lack without premium.