How to create a profitable Freemium startup (spreadsheet model included!)
andrewchenblog.com
JANUARY 28, 2010
To become profitable using a freemium business model, this simple equation must hold true: Lifetime value > Cost per acquisition + Cost of service (paying & free) Said in plain english, the lifetime value of your paying customers needs to be greater than the cost it took to acquire them, plus, the cost servicing all users (free or paying).
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