What is Freemium?
The freemium definition comes from combining the words “free” and “premium.” The freemium business model means that users get a product's or service's basic features for free but must pay for additional or advanced features. Sometimes freemium companies offer basic services as a free trial and then offer to buy the full product for an additional fee or pay extra for new features.
The term freemium was introduced only in 2006, although the business model itself has existed since the 1980s. First of all, this business model is popular among applications and Internet services.
The advantage of freemium is the possibility to quickly attract a large number of users who receive the product without incurring any costs. The freemium strategy is often chosen to get an influx of initial users in the early stages of product development. Companies gradually build relationships with customers. When they are completely satisfied with the product and willing to pay for additional features, companies offer them this opportunity. There are plenty of examples of companies and products that are Freemium, from iCloud by Apple to Grammarly.
