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. Commented May 25, 2019 at 13:08

1 Answer 1


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 and acknowledge you have read our privacy policy.

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