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Comparing Free Trial and Freemium Models
   
Free trial periods and “Freemium” models have grown in popularity as ways to drive increased adoption of recurring services. The thinking behind both is that giving potential customers exposure to the service, even in a less-functional variant will entice some subset of free users to convert to paying customers.

While there are many popular examples of successful products that have used free trials or freemium offerings to develop large and loyal paying customer bases, not all services are a good fit for such models. Furthermore, there are a number of considerations in approaching these models that are important to help organizations achieve their goals in terms of adoption, conversion, and long-term monetization. This white paper describes and analyzes both free trial and freemium approaches. It highlights the inherent trade-offs and sometimes-difficult choices that must be made to maximize success. It concludes with some recommended best practices for deploying free trial and freemium offerings.




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