Freemium

A permanently free tier intended to build a user base from which some proportion converts to paid.

The design constraint

The free tier must be genuinely useful and clearly limited in a dimension that grows with value — seats, volume, or advanced capability. Limits unrelated to how value scales produce users who are satisfied forever or who leave immediately.

It has a real cost

Free users consume support and infrastructure. Freemium is a marketing expense that appears in cost of goods, and it should be measured as one.

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