The classic mistake most entrepreneurs make is attributing the growth from offering their service or product for free to having an effective business strategy. Freemium as a business model doesn’t work because sooner or later you will need to have revenue to run your business effectively.
To avoid this mistake an entrepreneur must think of freemium as a marketing strategy rather than a business strategy.
If you want your product or service to have massive adoption in the quickest way possible, you must offer that service or product for free. I agree with the assertion of the former CEO of Google, Eric Schmidt:
Free is the best price.
That’s why the freemium model is a marketing strategy that works best as it increases the number of people who use your product or service.
Of course, when you start charging, not every one of your users will gladly pay for your product or service, but a few will realize the value of what you’re offering and pay for it. Always remember:
Freemium is not a business strategy, it is a marketing strategy.