
Ever scratch your head and wonder why you can use your favorite application for free? How can a business actually make money (and stay in business) when they offer their product for free? This article looks at the freemium business model, to see when it makes sense for a company to offer it. The freemium model is one where the company offers two (or more) versions of a product. The basic version is free to use. You have to pay for the premium version. The goal of this article is to answer the product management question, “Should you create a freemium business model?”


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