The freemium model is a business strategy where a company offers basic services or products for free while charging for premium features or advanced functionalities. This approach allows users to try the product without any initial investment, encouraging widespread adoption. Many software and app companies, such as Spotify and Dropbox, utilize the freemium model to attract users. Once users experience the free version, they may be more inclined to pay for additional features, creating a revenue stream for the company while maintaining a large user base.