Glossary / Definition
Freemium.
A business model offering basic features for free while charging for premium features.
Freemium is a pricing strategy where a product's basic features are provided free of charge, while more advanced features, functionality, or virtual goods are available for a premium. This model allows for viral growth and the development of large user bases.
Affiliates promoting freemium products often focus on demonstrating the value of premium features and helping free users understand the benefits of upgrading. Commission structures may include payments for free sign-ups and higher commissions for premium conversions.
Successful freemium affiliate promotion involves understanding the upgrade triggers and helping free users reach the point where premium features become necessary for their success. This requires deep product knowledge, customer journey understanding, and the ability to identify when users are ready for premium features.
Related terms
- Affiliate An individual or company that promotes products for a merchant in exchange for a commission.
- Affiliate Marketing A performance-based marketing strategy where affiliates earn commissions by promoting a merchant's products or services.
- Affiliate Network A platform that connects merchants with affiliates to facilitate affiliate marketing partnerships.
- Affiliate Program A system where a merchant rewards affiliates for driving traffic or sales through their marketing efforts.
- Commission The fee paid to an affiliate for generating a specific action, like a sale or lead.
- Click-Through Rate (CTR) The percentage of people who click on an affiliate link compared to those who view it.
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