Freemium Model

Definition: Freemium Model is a business model used by online companies in which users get the basic product or service for free and must pay for additional services. In other words, it is a "try before you buy" business model and experience to the users.
Multiple factors contribute to the Freemium strategy's success. The company can attract a user base without spending on marketing campaigns or the traditional sales force model because of the available free services. Freemium models are often more successful than the other limited-term offers because of the cumbersome cancellation processes or users find unlimited free access more appealing.

More on freemium model.
More on business strategy: 3C's Model of Ohmae, Ansoff Matrix, Business Continuity Planning, Business Model, Business Model Canvas, more...

MBA Brief offers accurate and concise definitions of MBA concepts, frameworks, methods and models.

We love to keep things really short, but provide links to learn more about your subject and to similar concepts.