Definition of Freemium:
A combination of the words "free" and "premium," the term freemium is a type of business model that involves offering customers both complementary and extra-cost services. A company provides simple and basic services for free for the user to try; it also offers more advanced services or additional features at a premium.
A business model that allows a consumer to receive basic services for free, but requires them to pay for any service deemed to be premium. For instance, a cable provider may offer a customer free HBO for 2 weeks, but then require the customer to pay a fee for any program considered to be premium. Another example is computer software which offers a user basic use of the program, but requires a fee to access advanced features.
A business model, especially on the Internet, whereby basic services are provided free of charge while more advanced features must be paid for.
The term freemium is attributed to Jarid Lukin of Alacra, a provider of corporate information and workflow tools, who coined it in 2006. The practice, however, dates from the 1980s.
How to use Freemium in a sentence?
- Freemium as a practice dates from the 1980s, though the term was coined in 2006.
- Freemiums are especially popular among computer software makers/providers and Internet-based businesses.
- There will be freemium , that is, free, ad-supported services with a subscription option.
- Freemiums represent a business model in which a company offers basic features to users at no cost and charges a premium for supplemental or advanced features.
Meaning of Freemium & Freemium Definition