Freemium

Meaning & Definition

A freemium is defined as a business model that allows companies to offer their basic services for free, while charging users who want to use additional features. Companies use this type of business model when providing software in an HR or HRMS platform. By doing this, companies are able to attract potential customers by providing them with free access to their product in order to build a relationship before selling them something different.

Important Aspects of Freemium

• Assists HR software providers with attracting and onboarding new users.
• Enables companies to try out HRMS systems before making a purchase.
• Increases user adoption of the product as well as product awareness.
• Assists in lead generation and converting leads into paying customers.
• Increases engagement in the product through free access to users.
• Helps to decrease barriers to entry for small businesses and startups.

Legal Compliance 

There are no specific laws associated with this term. However, it may involve compliance with existing data protection laws, such as the Information Technology Act, 2000, in India, or other software utilisation policies.