While the freemium model has many benefits, it also comes with its set of challenges:
1. Conversion Rates: Converting free users to paying customers can be difficult and often requires a well-executed strategy. 2. Support Costs: Providing adequate support for free users can be resource-intensive. 3. Feature Balance: Striking the right balance between free and premium features is crucial to avoid cannibalizing paid plans. 4. Churn Rate: Free users may have higher churn rates, requiring ongoing efforts to engage and retain them.