Certified Meeting Professional (CMP) Practice Exam

What is a defining characteristic of a freemium service model?

1. Free access to all features

2. Limited free services with additional paid options

3. Only paid services available

4. Trial periods with no commitments

The correct answer is: Limited free services with additional paid options

The defining characteristic of a freemium service model is the provision of limited free services with additional paid options. In this model, users can access a basic version of the service at no cost, which allows them to evaluate the offering. However, to unlock premium features, enhanced functionality, or additional content, users are required to pay. This strategy aims to attract a larger user base by lowering the initial barrier to entry, while also monetizing the service through those who choose to upgrade to a paid tier. The other options do not accurately represent the freemium model. Offering free access to all features would mean it's entirely free, not a freemium model. Only having paid services available would eliminate the free aspect that defines freemium. Lastly, while trial periods with no commitments may share some overlapping qualities, they generally refer to a different marketing strategy where users have a temporary access to full features, rather than a structured free version alongside premium paid options.