The ‘Freemium’ model for internet business

More and more businesses are being set up on the web, however many are realising that the public increasingly expect internet services to be free.  So how are people making money?

Here is an interesting video about the ‘Freemium’ model which is being adopted by many sites as an alternative way to make money.

The concept is simple, the majority of customers get the service for free but a small number pay for ‘add on’ or additional services. 

It sounds radical but actually, as the video suggests, the concept is as old as the hills!