The freemium pricing model involves offering a free version of your product to your customer, with the aim of steering your customers towards upgrading to a paid version. In some cases, freemium services incentivize customers to encourage them to sign up for the paid version. Music streaming service Spotify is the perfect example of a freemium pricing strategy, offering its users an option to use the platform for free, with the caveat of advertisements between songs and limited song skipping. Oftentimes, this will prompt users to bite the bullet, put their hands in their pockets, and sign up for the paid version.