What is Freemium Model? STARTUP FUNDA

What is Freemium Model?

We heard of Business model, Revenue model, Premium model , but what is this Freemium model? There's a lot of buzz going around this term so it's good to know about it so that we are not missing any opportunity. As per wiki Freemium is a business model by which a proprietary product or service (typically a digital offering such as software, media, games or web services) is provided free of charge, but money (premium) is charged for advanced features, functionality, or virtual goods. The word "freemium" is a portmanteau neologism combining the two aspects of the business model: "free" and "premium".

In short Freemium Model provides user's access to a limited free version without time restraint, unlike the trail version which expires at the end of the evaluation period.

Who are using Freemium Model?
Mostly used by  used by Web 2.0, Apps & Game startups and open source companies.

Tell one benefit of using Freemium Model?
It can be used to build a consumer base when the marginal cost of producing extra units is low.

Are there any good books to know more about Freemium Model?
Yes, Chris Anderson published the book Free, which examines the popularity of this business model. 

Tags: Freemium Model , Basics of fremium, Free + premium = freemium, 


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