Freemium is a pricing model where a core set of features is permanently free, with additional functionality available on paid tiers. Unlike a free trial, freemium has no time limit — users can stay free indefinitely. The goal is to acquire a large user base that upsells over time.
Freemium requires careful gate design: free must be valuable enough to attract real users, but constrained enough that growing teams need to upgrade. The median freemium-to-paid conversion rate is 2–5%; viral, team-based tools tend to convert higher because free users evangelize to colleagues who trigger team upgrades.