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Freemium is a combination of free and (pre)mium, which in this case means payment service and it is just like it sounds. Part of the offer, which is usually less advanced and/or contains advertising, is free and it is possible to pay for even more features or to avoid advertisements. The purpose of this model is to get potential customers to try a service and then convert these people into paying customers. The model is very common for online businesses and it is used by companies such as King, Skype, Spotify, Microsoft SQL server, SurveyMonkey and Mailchimp. Freemium is often combined with other types of revenue models such as advertisement, subscriptions or licensing.
