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The flip side is, what's the point of a freemium model if the free product gives most users what they want, so they have no incentive to ever pay to upgrade?

I've been a dropbox user for years and haven't paid them a penny since the free product does everything I need it to.

they did what many other companies do. Use the freemium model to gain users and publicity, then try to reduce costs and convert free users to premium by destroying the free tier.

This seems... Unsustainable?

Why is it unsustainable? After enough time, most people who would use it for free already are. Now, the goal is to either get rid of the free users or convert them to paid users.

They actually have to make money now instead of depending on VC funding.