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By Jess Shutt

You’re probably familiar with freemium — from games to business tools, the pricing strategy has proven a popular and effective business technique. A free, limited version of a product lets users try an experience before deciding whether or not to purchase the full-function paid version. If you’ve created playlists on Spotify, played a game on Facebook, or read three free articles a month at the New Yorker, you’ve used a freemium product. This strategy takes three common approaches:

  • Freemium vs. premium. In this model, the paid premium experience gives users features unavailable in the free version — letting them, for example, buy more effective armor in an online game or removing ads from a music app. …

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