Freemium is a business model that offers a product or service for free, with the option to upgrade to a paid version that unlocks additional features, limits, or benefits. It’s commonly used in SaaS and digital products to attract users by removing the barrier to entry and demonstrating value before asking for payment.

The word ‘’freemium’’ combines “free” + “premium.”

Freemium works best when the free version is genuinely useful, but premium features are compelling enough to convert. It’s often paired with product-led growth (PLG) strategies and self-serve onboarding.