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Can the 'Freemium' Model Work For You? Here's How to Know. Offering 'freemium' products can be a smart way to acquire customers and build a lucrative business, but it's not the right move for every company.

By Adam Bornstein

This story appears in the June 2018 issue of Entrepreneur. Subscribe »

Federico Gastaldi

When growing your business, it's important to figure out what model fits best for your business. Today, one popular strategy is the freemium model. Here's how to know if it's right for your business.

Q: I'm building an app, and I want to try a freemium model. Is this a successful strategy, or am I setting myself up for failure? -- Fabian, Sydney, Australia

Fabian, you're facing one of the biggest headaches of the digital age. Turn back the clock 30 years, and the idea of giving away your product for free was almost unheard of. Today it's a staple business model, used in some form by everyone from Dropbox to The New York Times to Match.com.

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