A freemium offering is a customer acquisition strategy that provides access to part of a software/ product free of charge, typically without a time limit. It does not limit the amount of time a user can access the software, but instead, limits features or usage.

The objective of this strategy is to get users hooked to and used to the free product to motivate them to pay for additional features or usage. 

Why it works 

Companies use the freemium model to win the mindshare of customers and to create product-qualified leads without spending on traditional sales strategies. Besides, they also get behavior/usage data that they can use to improve features, packages, and better define value propositions and user categories.

Related terms

Move your customer onboarding onto the fast lane