The Zero-Price Effect In Freemium Models Of SaaS Products

December 4, 2025 Forbes Magazine


Mindaugas Čaplinskas explores the psychological phenomenon known as the "zero price effect," which leads consumers to overvalue free offerings, complicating conversion strategies for SaaS companies. He delves into the benefits and risks of freemium pricing models, showcasing real-world examples like Spotify. This article is essential for anyone involved in pricing strategies, as it reveals insights into consumer behavior that can impact long-term business success.

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