SaaS & Startupintermediate
Freemium
Definition
A business model offering a free tier with limited features and a paid tier with full access. The goal is to convert free users into paying customers over time.
Why it matters
Freemium lowers the barrier to trying your product. Once users are embedded in your tool and getting value, upgrading feels natural, not like buying something new.
Example
Canva free has basic features. Canva Pro at £12.99/month unlocks brand kits, resize, and premium elements. Millions of free users experience the product, and a meaningful percentage upgrades.
Related terms
Learn the language of business - and build the systems behind it.
Rich Girl Systems turns 1168+ founder concepts into a step-by-step programme with daily challenges, XP and your own assistant.
Take the free founder quiz