Definitions

from Wiktionary, Creative Commons Attribution/Share-Alike License

  • adj. Offering basic services for free while charging a premium for advanced or special features.

Etymologies

Sorry, no etymologies found.

Examples

  • While you might not have heard the term freemium, if you use any Web product that costs you nothing, then you have direct contact with the freemium strategy.

    Forbes.com: News

  • These games, downloaded for free, are known as "freemium" games.

    Apple Hit With Class Action Lawsuit Over Minors' Purchase Of In-App Goods

  • What one calls freemium another calls marketing. reply

    Startup School: Wired Editor Chris Anderson On Freemium Business Models

  • This approach is known as the freemium business model, a term popularized in 2006 by Fred Wilson of Union Square Ventures.

    Reuters: Press Release

  • This approach to pricing is called "freemium" - some content is free, while premium content is not.

    NPR Topics: News

  • Now, the proliferation of so-called freemium titles—those that are free to play, but supported by the sale of virtual goods related to the game—is changing the equation.

    Sony Looks for Vitality in Dying Breed

  • This so-called freemium model is one that venture capitalists are excited about for Web businesses.

    Evernote Raises $10 Million From Investors - Bits Blog - NYTimes.com

  • Yet Spotify's U.S. delay has long been tangled in copyright negotiations with major labels, as the service is based on a so-called freemium model, allowing listeners to stream music free and pay for a more comprehensive service.

    latimes.com - News

  • The big number that's been pulled out of all that data is $14; that's the average amount of money spent per transaction from within so-called "freemium" games, or free titles that have paid add-on content.

    CNET News.com

  • Spotify streams music from a large catalog licensed from the labels, using the so-called freemium payment model, in which users can opt for a free, ad-supported usage agreement or a paid, ad-free subscription.

    NYT > Home Page

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Comments

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  • "Freemium" is a portmanteau of free ("provided without payment") and premium ("high quality" or "an extra bonus"). It is used as an adjective.

    A service described as "freemium" or as having a "freemium business model" provides its most basic services for free, but entices customers to upgrade to a paid subscription. Customers usually receive special benefits with their paid subscription that somehow enhance the "basic" service they previously received.

    This may be described as a sort of mild bait-and-switch: the service provider reels in the customer with the free service, but then attempts to convert that free customer into a paying customer by selling them on further services.

    Internet games often employ a "freemium" business model. Players may make an account and play for free, but they may receive in-game bonuses (money, powers, equipment, etc) in exchange for real-world currency.

    In persistent multiplayer games such as Dead Awaken, players who pay for in-game money and equipment enjoy a substantial competitive advantage over non-paying players. In single-player games, a player who pays for extra in-game content is not buying a competitive advantage, but may simply wish to have more in-game money and power to enjoy during play time.

    One game often described as freemium in this sense is Zynga's FarmVille:

    http://blog.games.com/2010/07/09/facebook-says-so-long-to-the-virtual-gift-shop-starting-august/

    Another sense of "freemium" is in the case of a community offering certain intangible benefits to members who donate money to keep the community as a whole afloat. Social news website Reddit recently appealed to its users for voluntary donations of any amount. Those who donated received public recognition in the form of a "trophy" on their user page, as well as a promise of possible unspecified benefits in the future. Some commentators described this as being a type of "freemium" service:

    http://mashable.com/2010/07/13/reddit-goes-freemium/

    July 14, 2010

  • A free service/product that is supported $-wise by those who sign up/pay for the premium edition.

    August 20, 2009

  • Used to indicate something that is free but still has premium value.

    October 4, 2007