A freemium strategy enables rapid adoption and testing of an offering by a broad set of users who potentially will convert to paying customers. To maintain a healthy user base and maximize the number of conversions over time, focus on keeping users engaged. Although the freemium version’s low barrier to entry encourages initial use, the likelihood of converting users to a long-term paid relationship depends on how well the freemium meets the buyer’s needs and what additional value is offered in the premium version. This report describes how to build and maintain a user base from which to convert users into paying customers.