VIEWS: 657 PAGES: 5 CATEGORY: Financial Statements and Projections POSTED ON: 12/21/2011
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.
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) 1 % conversion 1 Monthly membership fee (Tier 2) $ 50.00 Total freemium revenue $ 70,800.00 © Copyright 2013 Docstoc Inc. 2 TRIAL SOFTWARE No. of unique free trial downloads per day 4,000 % conversion to full version software (basic) 2 Price of full version software (basic) $ 40.00 % conversion to enterprise edition 0 Price of enterprise edition $ 150.00 No. of direct purchase of full basic version 130 No. of direct downloads of enterprise edition 5 No. of purchases of multi-license (3) 3 Price of multi-license (3) $ 400.00 No. of purchases of multi-license (5) 2 Price of multi license (5) $ 600.00 No. of purchases of multi-license (10) 1 Price of multi license (10) $ 1,200.00 Total freemium revenue $ 14,550.00 © Copyright 2013 Docstoc Inc. 3 ONLINE APPLICATION No. of users for the demo/evaluation use of application 5000 % users that will buy the full version 1 Price of the full version $ 20.00 Total Freemium Revenue $ 1,000.00 © Copyright 2013 Docstoc Inc. 4 ONLINE STORAGE Free storage allowed (GB) 5 No. of registered users per month 3000 % conversion to paid storage (Tier 1-monthly plan) 2 Price of Tier 1-monthly plan $ 30.00 % conversion to paid storage (Tier 2-quaterly plan) 0.3 Price of Tier 1-quarterly plan $ 80.00 % conversion to paid storage (Tier 3-yearly plan) 0.1 Price of Tier 1-yearly plan $ 250.00 Total Freemium Revenue $ 2,102.50 © Copyright 2013 Docstoc Inc. 5
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