Freemium
Etymology
A blend of “free” and “premium” suggested by Jarid Lukin in a 2006 comment on venture capitalist Fred Wilson’s blog, who then popularized it. The model works because acquiring users at zero price is easy, and a small fraction will pay. It became the default economics of the app era.
noun · /FREE-mee-um/
A business model offering a basic product free while charging for premium features or upgrades.
What it names
The free-front-door strategy that dominates apps, games, and software.
Example
The app is freemium — free to use, but every useful extra sits behind a subscription.
Related idea
Freemium is the model; the whale is who pays for it, since a handful of heavy spenders often fund the free experience of everyone else.
See also