The Game with Alex Hormozi

18. Attraction Offer. Freemium. | $100M Lost Chapters Audiobook

49 snips
Nov 14, 2025
Dive into the concept of freemium as an attraction strategy, learning who should use it and who should steer clear. Discover how freemium can drive customer acquisition through viral growth, but only with zero marginal costs for users. Explore successful examples like Dropbox and Spotify, and get insider tips on designing valuable offers that lead to paid upgrades. Understand the common pitfalls, from giving away too much core value to low conversion rates. It’s a powerful model, yet challenging to master!
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INSIGHT

Freemium Is An Acquisition Strategy

  • Freemium is an acquisition strategy, not a business model, that gives away core value to generate free, viral leads.
  • It only works when the free product costs almost nothing to serve, provides continuous value, and nudges users toward paid limits.
ADVICE

Don't Use Freemium Without Capital

  • Avoid freemium unless you have investors or large capital because it often requires heavy upfront subsidization.
  • Only pursue it if your product is so valuable it attracts users organically and your numbers are rock-solid.
ANECDOTE

Real Freemium Examples

  • Alex lists examples like Dropbox, Spotify, Wistia, and Gmail to show how freemium manifests in real products.
  • Each example gives free access with limits, then charges for removing limits or ads to drive upgrades.
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