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Fee in, free out

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Fee in, free out is a business model which works by charging the first client a fee for a service, while offering that service free of charge to subsequent clients. The model is appropriate in business environments (for example, digitization services) where there is a one-time cost to develop a product or service but little or no cost involved in its subsequent distribution.


The term was coined by Laura Welcher in a working group on long-term funding in 2009.

See also