The Game with Alex Hormozi 18. Attraction Offer. Freemium. | $100M Lost Chapters Audiobook
Nov 14, 2025
Discover the ins and outs of freemium strategies as an acquisition tool. Learn which businesses benefit from this approach and why some should steer clear. Hear real-world examples like Dropbox and Spotify that showcase how to drive user growth. Alex shares how to design a successful freemium offer and avoid common pitfalls that can sap profits. He emphasizes the importance of understanding acquisition costs and warns about the dangers of giving too much away for free. Mastering these concepts could be a game-changer for your business.
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Freemium Is An Acquisition Play
- Freemium is an acquisition strategy, not a business model.
- It works when the free product spreads virally and costs near zero to serve.
Give A Valuable But Limited Free Core
- Give away a core feature that costs almost nothing and provides ongoing value.
- Limit the free usage so active users will naturally want to upgrade to paid tiers.
Know Your CAC From Free Users
- Calculate true acquisition cost by dividing free-servicing cost by upgrade rate.
- Aim for average paid revenue to be multiples (e.g., 3x) of that CAC to be profitable.