Use the product before paying
People can use a freemium product’s core features without paying. Some later upgrade for more storage, advanced features, team controls, or support. Teams measure how often users upgrade.
Unlike a free trial, the free plan has no set end date, provided users stay within its limits.
Free users still cost money to serve
Freemium can work when free use helps attract paying customers and the cost of serving everyone stays manageable. Limits should be clear and match users’ growing needs. If the free plan is not useful, people may leave; if it offers everything, few may pay.