The business model has been in use for software since the 1980s. This is often in a time-limited or feature-limited version to promote a paid-for full version. The model is particularly suited to software as the cost of distribution is negligible. Thus little is lost by giving away free software licenses as long as significant cannibalization is avoided. The term "freemium" to describe this model appears to have been created only much later, in response to a 2006 blog post by venture capitalist Fred Wilson summarizing the model:Give your service away for free, possibly ad supported but maybe not, acquire a lot of customers very efficiently through word of mouth, referral networks, organic search marketing, etc., then offer premium priced value added services or an enhanced version of your service to your customer base.Jarid Lukin of Alacra, one of Wilson's portfolio companies, then suggested the term "freemium" for this model.