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A free tier is a loss-leader, intended to support sales of the paid product.

Or to stop people moving to a competing product in order to stifle competitors.

Or to leverage a network effect to grow the user base to support investment.

Or because the company simply believes their product should be accessible for free.

Using a 'freemium' model is a common approach to revenue growth but it isn't the only reason for a free tier to exist.



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