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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.
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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.
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Search results for 'Freemium'
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http://financialedge.investopedia.com/financial-edge/0811/4-Companies-Behind-The-Social-Media-Curtain.aspx
... Since August 2010, HootSuite has been operating under a "Freemium" business model that keeps the site free for 95% of its roughly 2 million users. ...
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http://financialedge.investopedia.com/financial-edge/0112/3-Ways-Apps-Make-Money.aspx
... Most apps follow a freemium model, where a basic level of product or service is provided free to the user, but to use the full product they will have to pay. ...
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