How “Freemium” was Coined

by Santosh

The web can playback history in a way that was never possible before. When digging through’s archives on business models I came across a post from March 2006 titled “My Favorite Business Model” where Fred wrote about what we know today as the freemium (tiered) business model. He asked his readers if they had a name for it and somewhere in comments Jarid put free and premium together to create Freemium. Later in another post, Fred declared that he just loved the name and wished that it would stick.

Seven years after his post the name is now in common use. At first I couldn’t believe I was actually watching the word come together. After having looked at the facts a bit I have to say that I’m grateful for the ring-side view.