Business Model Generation - preview

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growth & churn rate specifies how many users defect/respectively join the user base.

customer acquisition costs total expenses a company incurs to acquire new users.

% of premium & free users specifies how many of all users are premium paying users or free users.

free

cost of service indicates the average cost the company incurs to deliver a free or premium service to a free or premium user.

price of premium service indicates the average cost the company incurs to deliver a premium service to a premium paying user.

patterns

The freemium model is characterized by a large base of free service users subsidized by a small base of paying users. Users enjoy a free basic service and can pay for a premium service that offers additional benefits.


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