Freemium refers to a method where a company renders a free general product; to provide the consumers the choice to utilize a superior variant for prime cost.


Freemium operates by rendering a general product, and then a prime offer is made to the customer that comes along with a charge. Through this approach, sales increase without being more assertive. Many online games, VG anti-virus software, and Yahoo Mail classify within this section.

The Freemium method permits for more efficient crowdsourcing; to test for bugs within several software programs. Defects in the design are easily identifiable as many people use this commodity.

Helpful Articles to Understand Freemium:

Explainer: What is the Freemium Business Model
Business Insider (April 8, 2011)

How to Create a Profitable Freemium Startup
Andrew Chen Blog (September 27, 2010)

Going Freemium: One Year Later
MailChimp Blog (September 27, 2010)

Freemium Isn’t A Business Model, It’s A Marketing And Trust Strategy
What’s In Peter’s Head (October 17, 2008)

My Favorite Business Model
AVC (March 23, 2006)

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