Freemium pricing is a strategic business model that merges free core functionality with monetized premium features, aiming to balance user acquisition and revenue generation through strategic limitations and upgrade incentives. With typical conversion rates of 2-5%, the model relies on offering indefinite access to basic features, encouraging users to integrate the product into their workflows before making purchase decisions. Variations of freemium include traditional models with clear upgrade paths, freeware strategies relying on alternative monetization like advertising, and hybrid approaches combining freemium with usage-based pricing. Successful implementation involves minimizing customer acquisition costs, fostering viral growth, and ensuring product-market fit while managing operational costs and conversion rates. Companies like Slack and Spotify exemplify the model's potential for high conversion rates by offering compelling free value and strategic upgrade prompts, supported by robust billing systems for seamless transitions from free to paid usage.