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Satyam Kumar

"Turning visions int... • 22h

Freemium Model for Startups: Smart or Trap? What is it? Freemium = Free + Premium. You offer a basic product for free, and charge users for advanced features, limits, or perks. Who should consider it? āœ… Startups in SaaS, Edtech, Productivity, Developer Tools āœ… Products with low marginal cost per user āœ… If your product has a strong network effect or virality āœ… When upsell potential is clear (free users eventually convert) Where it flops āŒ High cost per user (think: customer service, bandwidth-heavy apps) āŒ If free users never feel the need to upgrade āŒ If your premium isn’t 10x better than free āŒ You’re not funded and need revenue yesterday Real Examples: šŸ’Ŗ Worked: Zoom, Canva, Notion 😬 Flopped: Evernote (too many free users, not enough upgrades) Freemium is NOT free marketing. It’s a bet: "Our free users will eventually pay." That bet only works if you're: Tracking usage data šŸ” Offering clear value jumps šŸ’„ Ready to support 90% non-paying users šŸ˜…

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