What type of business model involves offering services for free to entice customers to purchase a premium product?

The business model that involves offering services for free to attract customers toward purchasing a premium product is known as the freemium model. This strategy is particularly effective in fostering user engagement and building a customer base before monetization occurs.

In the freemium model, companies provide basic services or products at no cost to encourage a wide range of users to try them out. The goal is to create a large user base; once users derive value from the free offerings, they may be more likely to convert to paying customers in order to access enhanced features or additional services. This model is prevalent in many digital platforms and software services, where initial free access leads to premium subscriptions or upgrades, highlighting the value of the additional services offered.

The subscription model, while also related to ongoing payments for goods or services, does not inherently involve a free offering as a pathway to upselling. In contrast, the consulting model is typically based on direct fees for expertise rather than enticing customers through free services. Similarly, a non-profit model operates under completely different principles, focusing on social or community goals rather than profit through premium offerings.

Thus, the freemium model is the most suitable answer as it specifically captures the essence of using free services to drive interest in premium products