I get asked all the time what features should be freemium (aka free forever) and what features should go behind the paywall.
The answer is, of course, it depends.
1. Start with the Business Model: Why Offer “Free” at All?
Before deciding what’s free or paid, ask yourself: What role do free subscribers play?
If your business depends on viral marketing: Your free tier is a marketing engine. It attracts, delights, and expands your reach. That means your free experience should be good enough to make users want to share it.
Think of Canva or Notion. Both offer generous free features that help users create and collaborate. Every shared design or document becomes an organic ad for the product.
If your business depends on network effects: Your free subscribers add value for your paying users simply by participating. In this case, investing in a strong free experience is part of your product development strategy.
LinkedIn is a classic example. The platform only works because free users make it valuable for recruiters, job seekers, and advertisers.
2. Have You Already Given It Away for Free?
Many companies launch with generous free offerings, intending to “monetize later.” That can work especially in early growth or “land grab” phases, but it also sets a powerful precedent.
Before moving anything to paid, ask:
- Did we set user expectations early on?
If the answer is yes, think very carefully.
Charging for something previously free can feel like betrayal. When you change the deal, you risk not only churn but reputational damage.
3. Are You Already Making Money from Free Users?
If you’re already earning revenue from free users through ads, data, or aggregated insights, consider whether it’s ethical to also charge them.
If you monetize free users indirectly such as ads, data, insights, and marketplace fees, then charging them again can feel like double taxation.
Today’s consumers are more aware than ever. They know when they’re the product. If they realize that, they may expect more value for free or even compensation for their participation.
This isn’t just a pricing issue. It’s a trust issue. Transparency about how you use data and participation builds credibility and loyalty.
4. What is Your “Forever Promise”?
Your forever promise defines what users can count on from you as your product evolves.
You might have:
- One promise for free users (for example, “You’ll always have access to your notes even if you stop paying”)
- Another for paid users (for example, “You’ll get collaboration, analytics, and premium support”)
You can have different promises for different tiers, but each must be clear, consistent, and predictable.
The key is clarity. When expectations are clear, trust grows. When they aren’t, churn follows.
Here’s a quick framework:
The Top Guiding Principle
Be clear on your “forever promise”. You might have a different promise for your free subscribers than your paying ones, or the same one but to different degrees. In either case, you need to be clear to your members about what they can expect from you. Forever.