Dunning Solution

Ways to extract value from freemium customers without charging them

What is a freemium platform?

A freemium platform is a software application that is free to download but requires users to pay for certain features or unlock higher levels of functionality. This can be done via in-app purchases or other transactions such as recurring subscriptions. The term ‘freemium’ is derived from the combination of the two words ‘free’ and ‘premium’, implying that users who choose not to purchase optional extras on a freemium platform are entitled to all features, including those which are considered premium. You may also see this referred to as a ‘subscription-based software’ or ‘subscription-based model’.

Freemium Customers

Freemium is a model that many companies have adopted. It’s a way to get people to use your product for free but it also allows them to upgrade if they’re happy with what you offer. However, some companies miss out on the opportunity to extract value from their freemium customers by not charging them for additional services or features. In this article, we’ll explore how you can turn your existing users into paying customers without having to ask or even do anything!

Advertise to them

Advertising to freemium customers is a great way to get them engaged with your product and make them feel like part of the community.

There are many different types of advertising that you can use, including:

  • Targeted ads – these are based on specific criteria such as location or demographics. They’re usually more effective when they’re personalized or customized because they can target individuals based on their interests and actions in the app or website.
  • Social media ads – these allow you to promote your products through Facebook, Twitter, and other social networks where people are likely searching for related products or services (such as travel). You can also post videos about how great your product is!
  • Native ads – these are designed to look like the content around them, so they blend in with the rest of what’s being published on a website or blog. They’re usually more effective than traditional banner ads because people don’t feel like they’re being bombarded with promotional material.

Sell them on an upsell/upgrade

Upselling and upgrading are two of the most common ways to extract value from freemium customers.

They can be used together, or separately.

If you have an upsell/upgrade option in place, then it’s likely that your customer will be more likely to purchase additional content or services than if they didn’t have access at all.

Upselling is a common practice in the freemium model, but it doesn’t have to be. You can also offer an upgrade option instead of upselling. This gives your customer access to additional content or services at no extra cost. If you do choose to offer both options, then make sure that you clearly communicate which one is best for each user type.

Convert them to a paid feature set

Once you’ve identified your best freemium customers, it’s time to convert them into a paid feature set. The key here is to have a clear value proposition for the paid version and make sure that your free trial is easy to use, especially if it’s something new or complex.

It’s also important that any changes made during the free trial are supported by customer support so users don’t feel like they’re being taken advantage of or left in the dark after they’ve purchased a product.

Use their data to improve your product/business

If you have insight into your product or business, it is possible to take action on that insight. For example, if you’re selling a product that has been well received by customers, there are several factors (such as price and delivery time) that can be changed to improve the product. Data is important here — the more relevant data you have on why customers chose one product over another, the better idea you’ll have of which changes need to be made to improve your own offering.

  • Use their data to improve your product or business
  • Use their data to improve your marketing
  • Use their data to improve customer service
  • Use their data to improve sales and business intelligence


Freemium users are a valuable resource that can be harnessed to help grow your business. You should always make sure to offer free trials or free content in order to entice potential customers, but once they’re in, don’t forget about them!

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Luis Cordero Schiffmann
Luis Cordero Schiffmann
Digital Marketing Strategist & Web3 Passionate MBA with expertise in Science, Technology, and Innovation. I'm a big fan of the crypto revolution, the internet and business.