Businesses Owners Prefer “Freemium” Services

It’s hard to resist something that is free. This is the case with small business owners.  Data from our Local Pulse Survey™ shows that “Freemium” services are critical in the buying process. When asked what would drive a business owner to try a new product or service, 50% of business owners stated being able to try it for free was the biggest driver.



This “freemium” business model has become the go-to strategy for many companies in the Software-as-a-Service (Saas) space. When executed the right way, the business model can drive revenue, with limited sales costs. Using the “freemium” model overcomes the initial user resistance to paying for a new service. Once the user tries the base service and has a positive experience, it is easy to convert them to paying customers. In fact, 55% of businesses owners stated they would not have purchased their most recent service without trying it out first.


Marketers should use this information to strategize how this model could help their business become more sustainable. There are numerous success stories out there from Dropbox, Slack, FreshBooks, and many others.