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An early version of a managed package distributed to a sampling of your intended audience to test it.

Excerpt from Salesforce Packaging Guide:

What are Beta Versions of Managed Packages?

A beta package is an early version of a managed package that is uploaded in a Managed-Beta state. The purpose of a Managed-Beta package is to allow the developer to test their application in different Salesforce organizations and to share the app with a pilot set of users for evaluation and feedback.

Before installing a beta version of a managed package, review the following notes:

  • Beta packages can be installed in sandbox or Developer Edition organizations, or test organizations furnished through the salesforce.com Partner Portal only
  • The components of a beta package are editable by the developer's organization until a Managed - Released package is uploaded.
  • Beta versions aren't considered major releases, so the package version number doesn't change.
  • Beta packages are not upgradeable. Because developers can still edit the components of a beta package, the Managed-Released version might not be compatible with the beta package installed. Uninstall the beta package and install a new beta package or released version.