How do companies gain revenue from free products under the freemium model?
A)They operate as nonprofits.
B)They are sponsored by wealthy sponsors.
C)The cost of the free service is minimal (usually web based) and the upgrade costs enough to cover the cost.
D)They get donations from users.

Question

How do companies gain revenue from free products under the freemium model?
A)They operate as nonprofits.
B)They are sponsored by wealthy sponsors.
C)The cost of the free service is minimal (usually web based) and the upgrade costs enough to cover the cost.
D)They get donations from users.

Quizplus · Accepted Answer

Companies using the freemium model provide a basic version of their product or service for free, but charge for premium features. The cost of providing the free service is usually minimal (such as web hosting costs), and the revenue comes from users paying for the upgrade to the premium version. This allows companies to attract a larger user base and then monetize that base through paid upgrades.

How Do Companies Gain Revenue from Free Products Under the Freemium