A business model, especially on the internet, whereby basic services are provided free of charge while more /advanced features must be paid for. This is a portmanteau (a word blending the sounds and combining the meanings of two others) of free and premium.
Social networks are powerful drivers: Many services offer incentives for referring friends (which is more appealing when the product is free). And freemium is more successful than 30-day free trials or other limited-term offers, because customers have become wary of cumbersome cancellation processes and find indefinite free access more compelling.
Example
>Linkedin Premium Service Linkedin account creation and most of the basic features are free of cost. But, premium service got other offerings like sending messages to those who are in contact even in second degree networking relation, comparision of applicants and their suitability on job posting etc. Mostly, linked offers this as 30 day free trial and even take your credit card details and will take the charge if you continue after 30 days. Unsubscription option is there but many a times, due to the cumbesome process involved people might tend to continue.
>Dropbox, the popular cloud storage platform, offers a free plan for up to 2GB of space for backups and simple file sharing. The Pro plan for a significantly larger amount of space (1TB) and here it’s a paid service.
Dropbox’s freemium approach is to allow users to see how easy it is to backup and share their files using the Dropbox platform.
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