Business Development Glossary

Freemium Model

Definition: A business strategy where basic services are offered for free, and premium features are monetized through paid subscriptions or upgrades.
Why It Works in the UAE: The high adoption rate of digital platforms and apps in the UAE makes it easier for businesses to attract users with free services and convert them into paying customers over time.
Examples in the UAE:
- Bayut: A leading property marketplace offering free listings for basic users while charging for premium placement and additional visibility features.
- Zomato: Free access to restaurant reviews with paid Zomato Pro memberships offering discounts and exclusive perks.
Key Benefits:
- Low barrier to entry for customer acquisition.
- Creates a large user base to leverage for monetization.
- Enhances brand loyalty by showcasing value upfront.