In which model do companies often attract users by offering basic services for free?

The Freemium Model is characterized by attracting users by providing a basic version of a service or product at no cost, while charging for premium features, services, or enhancements. This approach allows companies to build a large user base by eliminating the barrier to entry that comes with upfront costs. Once users are engaged with the free offerings, there's the potential to convert a fraction of those users into paying customers by presenting additional value through the premium features.

The primary goal of the Freemium Model is to establish a broad audience which can later translate into revenue generation, typically through upgrades or additional services that offer enhanced functionality beyond what is available for free. This model is popular in digital products, mobile apps, and platforms where users can experience the core service without financial commitment. By leveraging this strategy, companies not only grow their user base effectively but also get valuable feedback to improve their offerings continuously.