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"Freemium" is a portmanteau of the words "Free" and "Premium", referring to a type of business model. In this model, basic products or services are provided for free, while additional or extended features are offered at a cost.
1. Expansion of User BaseAdopting the Freemium model provides an opportunity for many users to try out products or services, enabling a rapid expansion of the user base.2. Providing Value to UsersUsers can access basic features for free, allowing them to directly experience the value of the product. This deepens their trust and understanding of the product.3. Revenue GenerationSome users find value in additional or extended features and choose to upgrade to a paid plan. This allows the business to generate revenue.4. Improving User EngagementThe Freemium model provides an incentive for users to actively continue using the product. Even free users are expected to engage with the product and invest time in it.5. Promotion of Marketing and Brand AwarenessWith many users trying out the product, its spread through word-of-mouth and social media can be expected. This enhances marketing effects and promotes brand awareness.6. Customization According to User NeedsUsers can choose to use the free plan or upgrade to a paid plan as needed, according to their own needs. This improves user satisfaction.7. Building Long-term User LoyaltyBy providing value for free, a trust relationship with users can be built, enabling the construction of long-term loyalty. The Freemium model is user-oriented.