Freemium

AAA

DEFINITION of 'Freemium'

A combination of the words "free" and "premium" used to describe a business model that offers both free and premium services. The freemium business model works by offering simple and basic services for free for the user to try and more advanced or additional features at a premium. This is a common practice with many software companies, who offer basic software free to try but with limited capabilities.

INVESTOPEDIA EXPLAINS 'Freemium'

The freemium business model is popular for companies just starting out as they try to lure users to their software or service. An example of a freemium business model is Skype, a company that allows you to make calls over the Internet. Their basic service is free, but for more advanced services you have to pay a premium.

RELATED TERMS
  1. Electronic Commerce - ecommerce

    A type of business model, or segment of a larger business model, ...
  2. Corporation

    A legal entity that is separate and distinct from its owners. ...
  3. Business Model

    The plan implemented by a company to generate revenue and make ...
  4. Elder Care

    Elder care, sometimes called elderly care, refers to services ...
  5. patent attorney

    A lawyer with expertise in intellectual property law as it pertains ...
  6. Patent Pending

    Wording inventors use to let the public know they've filed a ...
Related Articles
  1. Choose To Beat The Bank
    Options & Futures

    Choose To Beat The Bank

  2. 5 Money-Saving Shopping Tips
    Options & Futures

    5 Money-Saving Shopping Tips

  3. Shopping Online: Convenience, Bargains ...
    Options & Futures

    Shopping Online: Convenience, Bargains ...

  4. 10 Breakout Ideas For Small Businesses ...
    Entrepreneurship

    10 Breakout Ideas For Small Businesses ...

comments powered by Disqus
Hot Definitions
  1. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
  2. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  3. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  4. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  5. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  6. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
Trading Center