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Table 3 Patterns of free business model (Brynjolfsson, 2010, Hofmann et al., 2010, Chaffey et al., 2015, Agostinho, 2016, Laudon et al., 2016, Lamberton et al., 2016)

From: Literature review on business prototypes for digital platform

Pattern Description Payment type
Advertisement-based This is basically a multi-sided platform-based pattern; in this, the firm earn revenue by showing ads and by the payment done by users to stop getting ads which totally depends on the user. Can be one time or repetitive or both.
Freemium This is basically a pattern in which a firm offers a basic free service to its users with an option to purchase premium services. Can be one time or repetitive or both.
Bait and hook This is a pattern in which a value preposition is provided for free or at a nominal cost for a certain period and when that initial period gets over, customers tend to make further purchases to continue the service. It is mostly repetitive in nature.