The value in freemium is in the advertising and exposure. This is especially useful for hooking students on you product early on (who can't afford it yet), and for convincing individuals to purchase. However when your target is a business the situation is more complex.
The free version is supposed to be limited enough to ensure that customers have an incentive to purchase. The cost of developing the free version should be very small as you are merly removing features from the working product. Also, the support for it should only request that you buy it.
Freemium is not about producing a usable product, it is about advertising a usable product. You should not run a business on software that was handicapped intentionally.
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