Freemium
A pricing model with a permanently-free tier and paid upgrades for advanced features.
Freemium gives everyone access to a functional free product, monetizing only the subset who need advanced capabilities or higher limits. Works well for PLG products with viral or team-expansion dynamics (Slack, Notion, Figma). Fails when the free tier is either too generous (nobody upgrades) or too restrictive (nobody adopts). Indie founders often default to freemium without thinking hard about it — a well-designed free trial is often better because it forces the conversion decision.
Related terms
PLG (Product-Led Growth)
A go-to-market motion where the product itself drives acquisition, activation, and expansion.
MRR (Monthly Recurring Revenue)
The predictable monthly revenue from active subscriptions. The indie-founder scoreboard metric.
Wedge
The narrow initial use-case that opens the door to a broader product later.