What’s The Freemium Business Model For Making Money?

What’s The Freemium Business Model For Making Money?
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  1. Freemium as the name suggests is a combination of the words “Free” and “Premium”.
    A freemium business model is a model where the basic features are provided free of cost and you have to pay a small fee if you want to use the advanced features.
    Note freemium and premium are two different strategies.
    Some of the well known apps that use freemium business model are LinkedIn, Candy Crush, Youtube Music, etc.
    In a freemium business model, it is observed that only 5% of the total user base opts for advanced features and their payment is what acts as revenue for the company and also supports the remaining active users of the app.
    Since the payments are real small amounts, the user does not mind opting for it and keeps continuing the service.

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