Freemium pricing opens a useful basic experience for free, then charges for more capacity or features. The free tier must let people experience real value.
Move the free limit in the demo to shift the range available without payment and the point where an upgrade is needed. A very low limit blocks learning; a very high one weakens the reason to upgrade.
Measure support cost alongside conversion. Abrupt limit cuts can damage trust.
When to use
Use when users can discover value on their own and incremental usage costs are understood.