Tag Archives: freemium business model

Freemium Business Model

Ever scratch your head and wonder why you can use your favorite application for free?  How can a business actually make money (and stay in business) when they offer their product for free?  This article looks at the freemium business model, to see when it makes sense for a company to offer it.  The freemium model is one where the company offers two (or more) versions of a product.  The basic version is free to use.  You have to pay for the premium version.  The goal of this article is to answer the product management question, “Should you create a freemium business model?”

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