Freemium
A pricing model offering a free tier alongside paid tiers, designed to acquire users who later convert.
Freemium is a pricing model offering a free tier alongside paid tiers, designed to acquire users who eventually convert as their needs grow. Freemium works when: marginal cost of free users is near zero, the free tier provides genuine value, and a clear graduation path drives upgrade intent. Notable freemium models: Slack, Notion, Calendly, Zoom, Loom. Freemium is hard to do well — most freemium attempts fail because the free tier is too generous (cannibalizes paid) or too limited (no value). Empire325 designs freemium models with clear conversion logic and instrumented funnels.
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Explore AI SaaS Tools →Related terms
Marketing Attribution
The practice of assigning credit for a conversion to specific marketing touchpoints across the customer journey.
Customer Acquisition Cost (CAC)
Total marketing and sales investment divided by new customers acquired in a period.
Customer Lifetime Value (LTV)
Total revenue (or gross profit) a single customer generates over the entire relationship.
Conversion Rate Optimization (CRO)
The systematic discipline of increasing the percentage of visitors who complete a desired action.