A free tier is a loss-leader, intended to support sales of the paid product. Or to stop people moving to a competing product in order to stifle competitors. O

A free tier is a loss-leader, intended to support sales of the paid product. Or to stop people moving to a competing product in order to stifle competitors. Or to leverage a network effect to grow the user base to support investment. Or because the company simply believes their product should be accessible for free. Using a 'freemium' model is a common approach to revenue growth but it isn't the only reason for a free tier to exist.