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Brad Down

Free + Premium = Freemium. It basically means that you offer your product for free to begin with, get users hooked and then charge a small % of your audience a premium fee for premium features down the track. This lowers friction in acquiring customers; you're not limiting growth by adding a payment system or even hinting that people might have to pay at some point. Free means people can check you out, kick your tyres, grow to love you and never leave. Or that's the idea.
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