no, he's actually extending credit - 'fronting' the product. he would loan someone an amount worth $300 in small end-user sales, for which the person would owe

no, he's actually extending credit - 'fronting' the product. he would loan someone an amount worth $300 in small end-user sales, for which the person would owe him $100 that they could pay back after selling it. freemium would be letting people sample small amounts of the stuff and/or for a limited time, then making them pay when they want a larger amount or to keep doing it. my DARE class in elementary school told us that drug dealers would try and hook us like this, but i'm 29 and i'm still waiting for my free samples.