Free users are a cost and a marketing channel.
Direct answer
Freemium gives users a free version and charges for upgrades. It works when the free tier shows value, the paid tier solves clear extra needs and costs per free user are low. Design the upgrade path carefully and measure conversion.
Design questions
- What makes users successful for free?
- What do power users need that is worth paying for?
- What is the cost of a free user?
- How will free users discover the upgrade?
Risks
- Too much free value.
- Too little to hook users.
- Support cost for free users.
Where Teyro fits
Teyro's How to Price a Product or Service course turns this into short lessons you can play in a few minutes a day. It has 50 lessons, and you can start free.
The bottom line
Free is a strategy, not a gift.
