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Monetization

Freemium

Freemium is a business model where you offer a free version and charge for premium features.

EC

Crealo Team

Creator economy experts helping creators monetize their skills

Published: 2026-01-25·Updated: 2026-02-07

Definition

The freemium model combines 'free' and 'premium'. You offer a basic free version of your product to attract users, and a premium version with additional features that requires payment. It's an effective strategy for building an audience and converting free users into paying customers.

Examples

  • 1Offering 5 templates free and a complete pack of 50 for $29.
  • 2A free mini-course of 3 lessons with the full 30-lesson course for payment.
  • 3A free online tool with basic features and a premium plan with advanced features.

How to apply it

Create a free version of your product that demonstrates value but leaves users wanting more. The premium version should solve the problem completely.

Frequently asked questions

Related terms

Marketing

Lead Magnet

A lead magnet is a free resource you offer in exchange for a potential customer's email address.

Monetization

Subscription

A subscription is a recurring payment model where the customer pays periodically for ongoing access.

Marketing

Conversion Rate

Conversion rate is the percentage of visitors who take the desired action.

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