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Freemium is a pricing strategy by which a product or service (typically a digital offering) is provided free of charge, but money (premium) is charged for proprietary features, functionality, or virtual goods. The freemium strategy is currently being used by software, media (Skype), games or web services (e.g. LinkedIn).

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Things To Consider

This strategy is mostly utilized via the internet on a subscription basis.



LinkedIn is an American based social media platform for working professionals or job seekers. Creating a profile is free. However, the website also offers additional packages on a monthly or annual basis that grant extra services to the user. LinkedIn currently has 3 different packages for job-seekers (Job Seeker Basic, Job Seeker, and Job Seeker Plus), ranging from about $20-$50 per month. Packages are available on a monthly or annual basis.

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For The SME

Another example of a freemium based online business is RealTimeBoard at


RealTimeBoard is an online collaboration tool that offers three different monthly packages (one is free) for users.