Consumer AI Product Strategy

Freemium Model Strategies#

1. Tier Structure Design

   • Free tier: Basic functionality with usage limits
   • Premium tier: Advanced features and higher limits
   • Enterprise tier: Business-focused capabilities
   • API access: Developer integration options

2. Conversion Optimization

   • Clear value proposition for premium features
   • Gradual feature unlocking
   • Usage-based limitations
   • Social proof and success stories

Case Study: Snapchat Imagine Lens#

• Initially exclusive to paid subscribers
• Made free for US users in October 2025
• Limited free AI-generated images
• Plans for international expansion

User Acquisition Strategies#

1. Viral Growth Mechanisms

   • Shareable AI-generated content
   • Social media integration
   • User-to-user invitations
   • Community building features

2. Partnership Distribution

   • Platform integrations
   • Device manufacturer partnerships
   • Social media platform features
   • Cross-promotion opportunities