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All glossary terms

Solo builder glossary

Freemium

Freemium is a model that offers a permanently usable free tier alongside paid plans. The free tier should deliver standalone value while giving suitable users a reason to upgrade.

Join Rudra · Definition and worked example

Formula or example

Free-to-paid conversion = users who become paid ÷ eligible free users in the cohort. Example: 30 paid conversions from 1,000 free signups = 3%.

Apply it

Use the Trial vs freemium calculator to work through your assumptions. See also the related guide.

Related statistic

Freemium self-serve conversion benchmarks: 3%–5% good, 6%–8% great (2023). Check its source population and definitions before applying it to your business.

Related terms

Sources

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