Docstoc

Freemium Revenue Model

Document Sample
Freemium Revenue Model Powered By Docstoc
					                                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)             
				
DOCUMENT INFO
Shared By:
Tags:
Stats:
views:657
posted:12/21/2011
language:English
pages:5
Description: 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.