part pricing strategy and part product strategy. It involves offering a version of your product for free and then charging users for additional functionality.
There are two ways you can make a freemium offering: You can take an existing product and slim it down into the most limited form in which people can get value from it. Alternatively, you can offer a related free tool to which your product would add greater value.
For example, with Slack, free users can use most of the features of vnpay database the tool but are limited in terms of file storage, integrations and the number of messages that can be sent. With HubSpot, the free version has limited features and as you upgrade to higher tiers you get access to more and more features. For Vidyard, their GoVidyard plugin is completely free for anyone to use to produce videos, but for features related to organizing your recorded videos, analytics and embedding videos, you need to have a paid Vidyard plan.
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The Benefits of Freemium for Companies
Really good marketing requires you to know a ton about the people you’re marketing to. Freemium enables you to learn more about your prospects way faster.
Once a user starts leveraging the product, you can use in-product triggers to determine what the best upgrade path is and when the right time to upsell is. You can even use those in-product actions to initiate customer marketing workflows so once someone has demonstrated that they’re a good-fit to become a paid user they’ll automatically receive communications nurturing them in that direction.
Additionally, the free version of a freemium product can serve as the onboarding process. Users set up the software, configure it to their needs and get familiar with the features so once they become paid users your company won’t have to invest heavily in implementation and onboarding.
