Freemium

Freemium

Freemium is a business model which works by offering basic services for free, while charging a premium for advanced or special features. The word "freemium" is a portmanteau created by combining the two aspects of the business model: "free" and "premium". [cite web|url=http://www.wordspy.com/words/freemium.asp|title=Wordspy Freemium|date=2006-06-06] The business model has gained popularity with Web 2.0 companies. [cite web|url=http://money.cnn.com/magazines/business2/business2_archive/2006/10/01/8387115/index.htm|publisher=Business 2.0|title=A Business Model VCs Love|date=2006-10-01]

Origin

The freemium business model was first articulated by venture capitalist Fred Wilson on 23 March 2006. [cite web|url=http://avc.blogs.com/a_vc/2006/03/my_favorite_bus.html|title=Fred Wilson's blog, A VC]

"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."

After describing the business model, Wilson asked for suggestions as to what to call it. Within a matter of hours, over 30 name suggestions were given by his blog readers. One such suggestion came from Jarid Lukin of Alacra, one of Wilson's portfolio companies. Lukin coined the term "freemium", and Wilson and his audience adopted it for the business model. [cite web|url=http://www.linkedin.com/in/jarid|title=Jarid Lukin's LinkedIn Profile] The term has since appeared in Wired Magazine and Business 2.0, and has been used by prominent bloggers such as Chris Anderson and Tom Evslin. 37signals is widely considered to be the gold standard "Freemium" success story Web 2.0 space.

See also

* Shareware

References

External links

* [http://avc.blogs.com/a_vc/2006/03/my_favorite_bus.html My Favorite Business Model] - Fred Wilson's Blog
* [http://wired.com/wired/archive/14.06/posts.html?pg=7 Blogging for Dollars] - Wired Magazine
* [http://www.contentmatters.info/content_matters/2006/05/whats_in_a_word.html What's In A Word? Freemium] - Content Matters
* [http://vowe.net/archives/007069.html Name That Business Model]


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Look at other dictionaries:

  • Freemium — бизнес модель, которая заключается в предложении воспользоваться компьютерной игрой, программным продуктом или услугой бесплатно, в то время как расширенные (улучшенная, премиум) функции продукта, его дополнительная функциональность или сервисы,… …   Википедия

  • Freemium — ist ein Geschäftsmodell, bei dem Basisdienste gratis angeboten werden und für weitere Dienste ein Preis verlangt wird. Freemium ist ein Kunstwort, bestehend aus free (gratis) und premium. Viele Internetfirmen benutzen Freemium als Geschäftsmodell …   Deutsch Wikipedia

  • freemium — UK US /ˈfriːmiəm/ noun [C] MARKETING ► a way of encouraging sales by offering basic goods or services for free while charging for more advanced products and services: »We are experiencing an explosion of games based on the freemium model whereby… …   Financial and business terms

  • Freemium — Este artículo está huérfano, pues pocos o ningún artículo enlazan aquí. Por favor, introduce enlaces hacia esta página desde otros artículos relacionados. Freem …   Wikipedia Español

  • Freemium — Le freemium est un modèle économique associant une offre gratuite, en libre accès, et une offre « Premium », haut de gamme, en accès payant. Ce modèle s applique par sa nature aux produits et services à faibles coûts variables ou… …   Wikipédia en Français

  • freemium — adj. Relating to a business model that offers basic services free, but charges a premium for advanced or special features. Example Citations: Rather than bragging about how insanely great its VoIP products are, Skype makes its users insanely… …   New words

  • Freemium — A combination of the words free and premium used to describe a business model that offers both free and premium services. The freemium business model works by offering simple and basic services for free for the user to try and more advanced or… …   Investment dictionary

  • freemium — {{＃}}{{LM F47082}}{{〓}} {{［}}freemium{{］}} {{■}}(ing.){{□}} {{《}}▍ s.m.{{》}} Modelo de negocio que consiste en ofrecer unos servicios básicos gratuitos y cobrar por otros más completos o específicos: • Un ejemplo de freemium es este programa para …   Diccionario de uso del español actual con sinónimos y antónimos

  • freemium — adjective Offering basic services for free while charging a premium for advanced or special features. When framing a business model within the consumer Internet space, we may hear about advertising supported, freemium, subscription, or a hybrid… …   Wiktionary

  • freemium — UK [ˈfriːˌmɪəm] / US noun [uncountable] business a method of selling in which the basic product is free, but customers pay for extra features Many online games use the freemium business model …   English dictionary

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