Learn in the textbookE-Commerce Business Models and Strategic Concepts
DefinitionFreemium (フリーミアム) is a business model that draws in users by offering the basic service free of charge and earns revenue by making advanced features or extra services paid.
ExplanationThe name is a blend of Free and Premium (an upgraded version sold at a higher price). Revenue comes from users who pay for the extras, and with a large enough user base, even a small share of payers brings in enough to run the service.