Freemium is a business model where a company offers users basic or limited features for free and then charges extra for additional or advanced features.
The freemium business model dates back to the 1980s, although the term itself was coined in 2006.
Freemium models are especially popular with software applications and Internet companies.
This type of business model has the advantage of attracting a large number of initial users, especially when there are no costs associated with trying out an application or service.
Ultimately, for the freemium model to work, companies must ensure that their premium users have access to more upgraded features such as increased storage or customization, as well as additional customer service.