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Freemium Revenue Model

ABOUT THIS DOCUMENT

This template worksheet can be used to calculate freemium revenue models for products such as trial software, applications, or free storage. In a freemium revenue model, the most basic service level of a product is available to the user at no cost. However, more sophisticated, premium, services or products require users to pay tiered subscription fees based on usage. The freemium business model allows companies a means of achieving market penetration as well as building revenue.

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Text Version

FREEMIUM REVENUE MODEL

About Freemium Revenue: In a freemium revenue model, the most basic service level of

a product is available at not cost, while more sophisticated service levels require users to

pay tiered subscription fees based on his or her level of usage. The freemium revenue

model is popular among Web 2.0 service companies as a means of simultaneously getting

market penetration, while also building revenues. Examples of successful freemium

companies include Flickr, Dropbox, Skype, 37signals and PDF Online.





Trial Membership

GUIDELINES

This template can be used to calculate freemium revenue for

popular freemium revenue models such as trial software,

Trial Software application and free storage. Click on the buttons on this page

to explore each of the models included in this template.



Online application





Online Storage









© Copyright 2013 Docstoc Inc. 1

TRIAL MEMBERSHIP







No. of free members added per day 400

No. of trial days 20

Avg. no of membership months for every paid member (Tier1) 3

% conversion 6

Monthly membership fee (Tier 1) $ 30.00

Avg. no of membership months for every paid member (Tier1)
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