The term "freemium" refers to a business model where a product or service is offered for free, but with limited features. Users can access basic functionalities without any cost, which encourages them to try the product. This model is popular in the digital world, especially among apps and online services, as it allows users to experience the value before deciding to pay for additional features. Many companies, like Spotify and Dropbox, use the freemium model to attract a large user base. Once users are engaged, they may choose to upgrade to a premium version for enhanced features, such as ad-free experiences or increased storage, generating revenue for the company.