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How to create a profitable Freemium startup (spreadsheet model included!)

andrewchenblog.com

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).

CPA 51
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Crazy! 189 Answers To The Top Startup Questions On Your Mind

maplebutter.com

Acquisition / Lifetime Value, etc. This has presented a problem of the decision makers at resorts balking on spending 50K+ on an unproven idea, although we did a beta test around 2000 with 3 mountains that went well. How can I lower my apps churn rate? So build a strong base. 5) Competition is good. 9) Think big, HUGE!