What does freemium mean?
Freemium is a business model in which a company offers a basic version of its product or service for free, but charges for access to more advanced features or additional services. The word "freemium" is a portmanteau of "free" and "premium."
Under the freemium model, the basic version of the product or service is often limited in some way, such as by offering fewer features or lower quality than the premium version. Customers can then choose to pay for access to the premium version in order to gain additional functionality or features.
The freemium model is commonly used in the software and technology industries, where companies offer free versions of their products to attract a large user base, and then charge for access to more advanced features or additional services. For example, many mobile apps are offered for free, but offer in-app purchases to unlock additional features or content.
The freemium model can be an effective way for companies to attract a large customer base and generate revenue from customers who are willing to pay for additional features or services. However, it can also be a challenging model to execute successfully, as companies must strike a balance between offering enough value in the free version to attract users, while also providing a compelling reason to upgrade to the premium version.
