What is Freemium?


‘Freemium’ refers to the sales tactic of providing the base product or service for free and pricing the additional options or services for a certain amount. The term was developed by combining the words ‘free’ and ‘premium’.


This business model has been traditionally used in the software industry for a long time. Certain software developers might limit access to certain features, while others might let the user use the software for a limited amount of time per day to get the end user accustomed to the software while charging extra for unlocking the extra feature or providing unlimited access.


Traditionally mobile games have been criticised for abusing this feature with something known as micro-transactions, which are basically in-game currency used to unlock certain sections of the game or progress further, which can be bought for real money.

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