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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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How to Create a Marketing Funnel by Responding to Customer Behavior

ConversionXL

For example, person #1 is searching for “the best social media software for automation.” In digital marketing, this will most likely be through search engines and social media. Social media, on the other hand, are browsing channels. Generating awareness through social media. That puts them in the awareness stage.

Customer 140