There are two things to consider when thinking about freemium. 1. Can you monetize free users with your product? In many cases you can, using ads, affiliate li

There are two things to consider when thinking about freemium. 1. Can you monetize free users with your product? In many cases you can, using ads, affiliate links, search partnership, ... 2. Is it cheap for you to support free users? This have to be compared to conversion rate. If it is really cheap to support free users than you can have bad conversion rate. In some specific cases the freemium model is the only model that works: products where interaction with other users is required for product to be usable. Only example I can think of right now are online games. You need players in order to attract more players, some of which may convert to be paying customers.