Mastering the Freemium Business Model: Tips and Pitfalls for Startups

Freemium Business Models: The Good, the Bad, and an Alternative You Should Consider

The freemium business model is popular, but is it right for your startup? In this video, I break down how freemium works, common mistakes founders make, and why it often leads to revenue problems. We’ll also explore an alternative approach—the reverse freemium model—that could be a better fit for your business.

Ideal for early-stage founders, this video provides valuable insights and practical advice on setting up a successful freemium model, complete with real-world examples and suggestions for effective customer engagement.

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00:00 Introduction to Freemium Business Model
00:54 Defining the Freemium Model
03:05 Challenges of the Freemium Model
04:09 Optimizing Your Freemium Strategy
05:27 Reverse Freemium Model Explained


Lance Cottrell has been an active startup advisor and startup mentor for over a decade.
He has helped countless startups navigate the key decisions of their journey, like when to take venture capital investment and negotiating term sheets.
He works with many companies in accelerators like Y Combinator and Founder Institute.
He provides help with startup funding including raising venture capital and angel investment.
He can help you achieve liquidity for your company at a high valuation.
Feel the Boot is a startup vlog of tips and advice for early-stage founders.