Offering a free version can serve multiple purposes for a startup or business. Some of the primary reasons include:
Customer Acquisition: A free version can lower the barrier to entry, making it easier to attract new users. Market Penetration: By providing a free version, businesses can rapidly penetrate the market and build brand recognition. Feedback and Iteration: Free users can provide valuable feedback that helps in refining and improving the product. Upselling Opportunities: Once users are hooked, businesses can offer premium features or services through a freemium model or other monetization strategies.