Glossary term
What Is Freemium?
A monetization model where the app is free to download and use at a basic level, with paid subscriptions or in-app purchases unlocking advanced features.
Freemium is the dominant app pricing model because App Store users rarely pay for downloads — they expect to try before buying. Successful freemium apps design the free tier to showcase the core value while creating natural friction points that paid users escape. Common patterns: usage limits (5 generations/day), feature gates (export locked), time gates (free for 7 days). The 'free' tier is a marketing expense, not altruism.
Common Questions
What free-to-paid conversion rate should I target?
2-5% is typical for consumer apps. Below 1% means free tier is too generous. Above 10% means free tier might be too restrictive.
Is freemium always better than paid-upfront?
For consumer apps, yes — download velocity is usually higher. For prosumer/B2B, paid-upfront or trial-to-paid can work better.
Related terms
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