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The Community Strategy Dilemma: Free, Paid, or Freemium?

  • Janus Lasting
  • Aug 21, 2024
  • 3 min read

As more brands and organizations turn to community as a growth lever, the question of how to structure access—free, paid, or somewhere in between—has become increasingly complex. While freemium models promise flexibility and scale, they often create unintended challenges that erode value at both ends of the spectrum.

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As more brands and organizations turn to community as a growth lever, the question of how to structure access—free, paid, or somewhere in between—has become increasingly complex. While freemium models promise flexibility and scale, they often create unintended challenges that erode value at both ends of the spectrum. In contrast, a clearly defined community model—either entirely free or paid—tends to offer stronger alignment with purpose, a more sustainable experience for members, and operational clarity for those running the community.


The Allure and Pitfalls of Freemium

The freemium model typically involves offering a baseline community experience for free, with added value locked behind a paywall. This approach can feel like a safe bet: lower barriers to entry increase reach, while paid tiers theoretically monetize the most engaged or invested members.


However, in practice, freemium models often create a value trap. Free members expect ongoing access to content and connection, while paid members demand a demonstrably higher tier of value. Maintaining both experiences typically requires community managers to produce “bonus” products—courses, gated events, exclusive content—that may be tangential to the core purpose of the community. This leads to resource strain and diverts attention from what should be the community’s primary goal: building meaningful connection, engagement, and momentum around a shared purpose.


Over time, this fragmentation can dilute the community’s identity. Paid members may feel underwhelmed, while free members either remain passive or churn. Instead of reinforcing a shared culture, the freemium model splits the community into two experiences—one that feels like a teaser, and another that often struggles to justify its premium.


Choosing a Core Identity: Free or Paid

The most resilient communities tend to choose a single identity early: either free and open-access, or paid with a clear, upfront value proposition.


Free communities work well when the core goal is reach, awareness, or thought leadership. If your business model benefits from network growth—such as product-led growth, event marketing, or brand equity—then removing barriers makes sense. The key is to ensure the experience is well-moderated, active, and high-quality so that the brand’s reputation grows alongside membership.


Paid communities, on the other hand, work best when they are intentionally smaller and driven by exclusivity, accountability, or high-value interaction. Members are not just customers—they are investors in the community’s purpose. A paid model also clarifies the value equation from the outset, removing the need for artificial upsells or constant justification of worth. If you're solving a specific problem for a defined audience, a paid model rewards clarity and commitment on both sides.


Start with a Clear Model, Build with Purpose

At Janus Lasting, we’ve seen firsthand how misalignment between a community’s value proposition and its access model can lead to drift, dissatisfaction, and burnout among organizers. That’s why we advocate for establishing a clear community model from the start. Choose free if your priority is expansion and awareness. Choose paid if your focus is transformation, intimacy, or exclusive value.


Avoid freemium unless you have the resources and structure to treat both tiers as independent products. Otherwise, what starts as flexibility can quickly become fragmentation.


In community building—as in product design—clarity is kindness. The earlier you define who your community is for, what they get, and why it matters, the more resilient and rewarding the community becomes for everyone involved.

 
 

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