What is Freemium?
Freemium: Offering a free basic version and charging for premium features.
Where Freemium fits
Freemium is part of Business Models in Entrepreneurship. A business model explains how you make money: subscriptions, freemium, franchise or platforms. A moat protects it, and product-market fit proves people truly want it.
Practical tip
Test pricing early and favor recurring revenue.
Related terms
- Franchise
- Paying to run a business under an established brand.
- Competitive moat
- A lasting advantage that protects profits from rivals.
- Cash cow
- A mature product that reliably funds the rest.
- Product-market fit
- When a product clearly meets strong demand in its market.
- Subscription model
- Customers pay regularly for ongoing access.
- Platform business
- A business that connects two groups of users.
- Revenue stream
- A source of money for a company.
- Niche market
- A small, specialized segment of customers.
Formulas you will use with it
Test yourself
Which term means: “Offering a free basic version and charging for premium features.”?
Freemium · Niche market · Cash cow
Answer: Freemium
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