Designing freemium with usage limitation: When is it a viable strategy?
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The existing literature has examined freemium design primarily through theoretical models analyzing feature-gating versus usage-limiting strategies in isolation.
“The existing literature has examined this question primarily through theoretical models analyzing featuregating versus usage-limiting strategies in isolation (Niculescu & Wu, 2014;Kato & Dumrongsiri, 2022;Shi et al., 2019)”
From Scaling a SaaS Business: The Role of Freemium Models in Converting Free Users to Paying Customers (2026) · cites this paper as Kato & Dumrongsiri, 2022
SaaS companies employing hybrid freemium models that combine feature-gating with usage limits achieve higher free-to-paid conversion rates than those using single-dimension models (feature-only or usage-only limitations).
“SaaS companies employing hybrid freemium models that combine feature-gating with usage limits achieve higher free-to-paid conversion rates than those using single-dimension models (feature-only or usage-only limitations).”
From Scaling a SaaS Business: The Role of Freemium Models in Converting Free Users to Paying Customers (2026) · cites this paper as Kato and Dumrongsiri (2022)
Cites
Economics of Free Under Perpetual Licensing: Implications for the Software Industry
Niculescu, M. F., & Wu, D. J. (2014) · Information Systems Research · doi:10.1287/isre.2013.0508 · Cited by 151 · see citing works
Wagner, T. M., Benlian, A., & Hess, T. (2014) · Electronic Markets · doi:10.1007/s12525-014-0168-4 · Cited by 131 · see citing works
The effect of free sampling strategies on freemium conversion rates
Koch, O. F., & Benlian, A. (2017) · Electronic Markets · doi:10.1007/s12525-016-0236-z · Cited by 67 · see citing works
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Scaling a SaaS Business: The Role of Freemium Models in Converting Free Users to Paying Customers
Kessler, N., & Gallagher, P. W. (2026) · American Impact Review · doi:10.66308/air.e2026022
- Authors
- Kato, T., & Dumrongsiri, A.
- Affiliations
- Thammasat University (TH)
- Corresponding author
- Dumrongsiri, Aussadavut
- Venue
- Electronic Commerce Research and Applications
- Publisher
- Elsevier BV
- Published
- 2022-05
- Volume
- 53
- Pages
- 101153
- ISSN
- 1567-4223 (ISSN-L)
- OpenAlex
- W4293243729
- Cited by
- 9
- References
- 3
- Citations by year
- 2026: 4 · 2025: 2 · 2024: 2 · 2023: 1
- FWCI
- 0.27
- Type
- journal article
- Language
- en
- Open access
- green
- doi.org
- Licence
- Locations
- Electronic Commerce Research and Applications (publishedVersion)
- SSRN Electronic Journal (publishedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Strategy and Management › Digital Platforms and Economics
- Social Sciences › Business, Management and Accounting › Marketing › Consumer Market Behavior and Pricing
- Social Sciences › Business, Management and Accounting › Management Information Systems › Supply Chain and Inventory Management
- Keywords
- freemium model, user heterogeneity, conversion rate, heavy users, two-stage model, forward-looking behavior, pricing strategy
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