Quick definition · 2 min Builder & startup term
Freemium
Freemium is a model where the basic product is free and you pay to unlock more, the most common way software grows.
Think of it like
A free sample that is genuinely useful, with a paid aisle right next to it for when you want more.
Example
A free tier with limits, plus a paid plan that removes them, is freemium. Most AI tools use it.
Why it matters
Freemium is how many AI products get users in the door, then convert some to paying. Key for anyone building one.
Where you’ll see it
SpotifyDropboxmost AI tools
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