TYPES OF Freemium
STARTUP
B U S I N E S S M O D E L S
Offers basic services for free while
charging for premium features or
advanced functionalities.
Subscription
Customers pay a recurring fee at
regular intervals to access a
product or service.
Marketplace
Connects buyers and sellers on a
platform, earning revenue through
transactions or service fees.
Aggregator
Gathers and presents information
or services from various sources in
one place, often earning a
commission on transactions.
Pay-as-you-go
Charges users based on their
actual usage or consumption of a
product or service.
Fee-for-service
Customers pay a specific fee for
each service provided, often in
professional or consulting
industries.
Edtech
Focuses on providing educational
services or products, often
through online platforms or apps.
Lock-in
Creates strong customer loyalty
by making it difficult or expensive
for customers to switch to a
competitor.
API Licensing
Generates revenue by licensing
access to its application
programming interface (API) for third-
party developers.
Open-source
Provides a product or service with
source code open to the public, often
monetized through support,
customization, or related services.
Data as a Business
Generates revenue by collecting,
analyzing, and selling data to
businesses or individuals.
Blockchain
Utilizes blockchain technology to
create and deliver value, often
associated with decentralized and
secure transactions.
Freeterprise
Blends elements of freelancing
and enterprise, allowing
businesses to tap into a pool of
freelancers for specific tasks.
Razor Blade
Sells a primary product at a low
cost or for a loss, with the
expectation of profiting.
Direct-to-consumer
Connects buyers and sellers on a
platform, earning revenue through
transactions or service fees.
Crowdsourcing
Harnesses the power of a crowd to
gather ideas, content, or solutions,
often through online platforms.
Private & White Label
Involves selling products under a
brand's own label or under the label
of another company
Franchise
Allows individuals to own and operate
outlets of a larger company, using its
branding and business model.
Ad-based
Generates revenue through
advertising, often offering free or
subsidized products or services to
users.
Octopus
Diversifies into multiple, seemingly
unrelated business areas to create a
resilient and profitable organization.
Transactional
Earns revenue through individual
transactions, common in retail and
e-commerce.
Peer-to-Peer
Facilitates direct transactions or
interactions between individuals,
often through a digital platform.
P2P Lending
Connects borrowers directly with
lenders through an online platform,
cutting out financial institutions.
Brokerage
Acts as an intermediary, earning a
commission by facilitating
transactions between buyers and
sellers.
Dropshipping
Sells products without keeping
them in stock, relying on a third
party to fulfill orders.
Space as a Service
Provides flexible workspace
solutions on a pay-as-you-go
basis.
3rd Party Logistics
Offers logistics and supply chain
services to businesses that outsource
these functions.
Last Mile Delivery
Specializes in the final leg of the
delivery process, ensuring products
reach the end consumer.
Affiliate
Earns a commission by promoting
other people's products or services
and driving sales through affiliate links.
Virtual Goods
Sells non-physical products or
services in virtual or digital
environments.