Name for a business model where you get free ‘basic’ packages

I’m looking for a term for a business model that includes free base packages and charges you for the amount of service you require.
Some examples:

  • Unity, pay once you make 100’000
  • Google Drive, Dropbox, …, pay for more space
  • Free webhosting and one database, pay more for better stuff

Is there a name for this kind of business model?


The word I see used most often is “freemium”.

Investopedia says:

Freemium is a combination of the words “free” and “premium” used to describe a business model that offers both free and premium services. The freemium business model works by offering simple and basic services for free for the user to try and more advanced or additional features at a premium.

Source : Link , Question Author : Peter , Answer Author : D Mac

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