Freemium

real moneyfree to playFreemium business modelfreemium modelin-game purchasesoptional purchasesavailable for purchaseboth free and paidfor freefree
Freemium, a portmanteau of the words "free" and "premium", is a pricing strategy by which a product or service (typically a digital offering or an application such as software, media, games or web services) is provided free of charge, but money (a premium) is charged for additional features, services, or virtual (online) or physical (offline) goods that expand the functionality of the free version of the software.wikipedia
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Freeware

freefree of chargeRegisterware
Freemium, a portmanteau of the words "free" and "premium", is a pricing strategy by which a product or service (typically a digital offering or an application such as software, media, games or web services) is provided free of charge, but money (a premium) is charged for additional features, services, or virtual (online) or physical (offline) goods that expand the functionality of the free version of the software.
Freeware may be intended to benefit its producer by, for example, encouraging sales of a more capable version, as in the freemium and shareware business models.

Free: The Future of a Radical Price

Free
In 2009, Chris Anderson published the book Free, which examines the popularity of this business model.
That class of model has become widely referred to as "freemium" and has become very popular for a variety of digital products and services.

Badoo

It has become a popular model, with notable examples including LinkedIn, Badoo, and in the form of a "soft" paywall, such as those employed by The New York Times and by Press+.
Badoo operates on a freemium model, whereby the core services can be used without payment.

Open-source model

open sourceopen-sourceopen source technology
As well as for traditional software and services, it is now also often used by Web 2.0 and open source companies.

Free-to-play

free to playpay-to-winF2P
A subset of this model used by the video game industry is called free-to-play.
The most common is based on the freemium software model; thus, free-to-play games are oftentimes not entirely free.

Angry Birds

Peter VesterbackaRedTelepods
The game was very popular, at one point overtaking Angry Birds as the top-downloaded app on the Apple iOS App Store.
By July 2015, the series' games had been downloaded more than three billion times collectively, making it the most downloaded freemium game series of all time.

Microtransaction

microtransactionsin-app purchasesin-app purchase
By September 2012, all but two of the 50 highest-grossing apps in the Games section of Apple's iTunes App Store supported in-app purchases, leading Wired to conclude that game developers were now required to choose between including such purchases or foregoing a very substantial revenue stream.
Free-to-play games that include a microtransaction model are sometimes referred to as "freemium".

Pokémon Rumble World

With the title Pokémon Rumble World, Nintendo took a different approach by making it possible to complete the entire game without buying premium credits, having that as an option so players can proceed through the game at a pace that suits them.
Pokémon Rumble World is a freemium action video game in the Pokémon series developed by Ambrella, published by The Pokémon Company and distributed by Nintendo for the Nintendo 3DS.

Freemium Isn't Free

Freemium Isn’t Freespending on freemium gaming
In November 2014, the sixth episode of Season 18 of the animated TV series South Park aired an episode entitled "Freemium Isn’t Free".
The episode lampoons the popularity of freemium mobile apps such as The Simpsons: Tapped Out and Family Guy: The Quest for Stuff.

Business models for open-source software

Business models for open source softwareprofessional open-sourcecommercial application
Notable examples include open core (sometimes referred to as dual licensing or multi-licensing), software as a service (not charging for the software but for the tooling and platform to consume the software as a service often via subscription), freemium, donation-based funding, crowdfunding, and crowdsourcing.

Open-core model

open coreopen-corecommercial open source
Some businesses use a variation of the model known as "open core", in which the unsupported, feature-limited free version is also open-source software, but versions with additional features and official support are commercial software.

Pay what you want

pay-what-you-wanta name your own pricecustomers could set their own price

Portmanteau

portmanteau wordportmanteausportmanteaux
Freemium, a portmanteau of the words "free" and "premium", is a pricing strategy by which a product or service (typically a digital offering or an application such as software, media, games or web services) is provided free of charge, but money (a premium) is charged for additional features, services, or virtual (online) or physical (offline) goods that expand the functionality of the free version of the software.

Pricing strategies

pricing strategypricepricing
Freemium, a portmanteau of the words "free" and "premium", is a pricing strategy by which a product or service (typically a digital offering or an application such as software, media, games or web services) is provided free of charge, but money (a premium) is charged for additional features, services, or virtual (online) or physical (offline) goods that expand the functionality of the free version of the software.

Cannibalization (marketing)

cannibalisationCannibalizationcannibalizing
Thus little is lost by giving away free software licenses as long as significant cannibalization is avoided.

Fred Wilson (financier)

Fred WilsonFlatiron PartnersUnion Square Ventures
The term freemium to describe this model appears to have been created only much later, in response to a 2006 blog post by venture capitalist Fred Wilson summarizing the model: Give your service away for free, possibly ad supported but maybe not, acquire a lot of customers very efficiently through word of mouth, referral networks, organic search marketing, etc., then offer premium priced value added services or an enhanced version of your service to your customer base.

Word of mouth

word-of-mouthbuzzviva voce
The term freemium to describe this model appears to have been created only much later, in response to a 2006 blog post by venture capitalist Fred Wilson summarizing the model: Give your service away for free, possibly ad supported but maybe not, acquire a lot of customers very efficiently through word of mouth, referral networks, organic search marketing, etc., then offer premium priced value added services or an enhanced version of your service to your customer base.

Organic search

organicorganic resultsorganic search engine results
The term freemium to describe this model appears to have been created only much later, in response to a 2006 blog post by venture capitalist Fred Wilson summarizing the model: Give your service away for free, possibly ad supported but maybe not, acquire a lot of customers very efficiently through word of mouth, referral networks, organic search marketing, etc., then offer premium priced value added services or an enhanced version of your service to your customer base.

Alacra

Jarid Lukin of Alacra, one of Wilson's portfolio companies, then suggested the term "freemium" for this model.

Chris Anderson (writer)

Chris AndersonAnderson, C.
In 2009, Chris Anderson published the book Free, which examines the popularity of this business model.

Web 2.0

Enterprise 2.02.0Web2.0
As well as for traditional software and services, it is now also often used by Web 2.0 and open source companies.

LinkedIn

Linked InLinkedIn AnswersDan Nye
It has become a popular model, with notable examples including LinkedIn, Badoo, and in the form of a "soft" paywall, such as those employed by The New York Times and by Press+.

Paywall

pay wallpaywallsmetered paywall
It has become a popular model, with notable examples including LinkedIn, Badoo, and in the form of a "soft" paywall, such as those employed by The New York Times and by Press+.

The New York Times

New York TimesNY TimesNYT
It has become a popular model, with notable examples including LinkedIn, Badoo, and in the form of a "soft" paywall, such as those employed by The New York Times and by Press+.