What Makes the Freemium Model Work? | Business Models



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Over the past decade “freemium”—a combination of “free” and “premium”—has become a common business model among smartphone app developers, Internet startups, and other Software as a Service business (SaaS). But how does giving away a service something for free work to a businesses benefit? In this video, you’ll learn how the freemium business model can be a viable strategy for explosive user growth along with challenges in executing freemium successfully. 

Learning Objective #1: Describe the basic components of the freemium model.
Learning Objective #2: Understand the challenges associated with operating a freemium business model. 

Learning Objective #3: Analyze the underlying economics of the freemium model.

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