Freemium

Freemium is the most common PLG pricing model. It gives users unlimited time with a limited feature set, betting that product value will drive conversion to paid plans. The key decision in freemium design is where to draw the line. Too generous and users never upgrade. Too restrictive and users never experience enough value to convert. The best freemium models gate features that become valuable after the user is already activated. Conversion rates vary widely: 2-5% is typical for B2B SaaS freemium products, though best-in-class companies achieve 10%+.