What does the term 'freemium' refer to in a business context?

The term 'freemium' is used in a business context to describe a model where a product or service is offered free of charge, but with the option for users to pay for additional features or services. This approach allows companies to attract a large user base by providing basic offerings at no cost while generating revenue through upgrades or premium features that can be purchased.

Offering product samples and trial versions does fit within this framework; however, it is not an exact match for the concept of 'freemium'. The essence of freemium is that it maintains a core product that is free while encouraging customers to convert to a paid version for enhanced functionalities.

In contrast, a tiered pricing model for software is more specific to pricing strategies rather than the freemium offering, as it involves creating different levels of product offerings based on the price, which may not always include a free tier.

The other options refer to distinct concepts that do not accurately encapsulate the freemium model. The idea of selling products at premium prices does not relate to free offerings, and a marketplace for exclusive items does not inherently imply a free or tiered effort either. Therefore, the understanding of 'freemium' is closely aligned with the idea of providing free