TLDR
Freemium models maximize lifetime value by having free features add enough value for user’s to engage with the product regularly, but must also cause enough friction that upgrading is worth it.
More In Depth
Of these three products, I am premium with Spotify and NYT but not Figma. Although I use all three, I use Spotify and NYT at a far more frequent basis than I do Figma, which I think is indicative of the freemium strategy for these products. Ultimately, enough needs to be available in order for it to gain your loyalty as a user, however it just needs to be subtly annoying enough that it doesn’t push you away, but rather pulls you in closer for a subscription. This was my experience with Spotify and NYT – the ads or paywalls were agonizingly annoying, but not in the way that made me want to switch to other platforms, but in a way that made me cave in to the subscription. I think for that reason, this strategy only largely works with incredible products since its less likely people will jump ship but will actually commit further. Balancing this line of creating a great experience but also adding enough friction and annoyance that it brings people to subscribe, I think starts with offering your core product for free at a level that user’s can engage with daily, and then adding minute friction in core features.
