3

I'm looking for a term for a business model that includes free base packages and charges you for the amount of service you require.
Some examples:

  • Unity, pay once you make 100'000
  • Google Drive, Dropbox, ..., pay for more space
  • Free webhosting and one database, pay more for better stuff

Is there a name for this kind of business model?

  • 3
    To whoever voted to close this as primarily opinion-based: it’s not. There are many business models that have conventional, agreed-upon names, and this is not unlikely to have one as well. There is nothing opinion-based about the question “Does this business structure have a conventional name”. @Peter You may attract additional close votes because you haven’t included where you’ve looked to see if you can find a name yourself. I assume you have looked, but were unable to find anything; please edit the question to specify where and how you looked in vain. – Janus Bahs Jacquet May 25 at 13:08
  • 1
    If you have already found freemium, then what is wrong with using it? If you don't like it, why don't you like it? What are your objective criteria for choosing one name (or phrase) over another? – Jason Bassford May 25 at 17:22
  • 2
    You should post your discovery of "freemium" as an answer to this question. not as an edit. – Jasen May 26 at 3:09
  • Aw, come on! That's a "come on". – Hot Licks May 27 at 11:48
  • @HotLicks Sorry I'm a little confused on how to solve this. Any suggestions? – Peter May 27 at 11:50
2

The word I see used most often is "freemium".

Investopedia says:

Freemium is 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 additional features at a premium.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.