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How to create a profitable Freemium startup (spreadsheet model i

How to create a profitable Freemium startup (spreadsheet model i
Click to download Freemium spreadsheetBackground on this discussion Last year, the stupendous Daniel James co-hosted a talk with me on Lifetime Value metrics for subscription and virtual goods-based items. You can see the video/outline for the talk, Daniel’s commentary, and a mindmap of the talk (scroll to the bottom of the post). As part of the talk, we worked on a spreadsheet model for freemium businesses that we didn’t get enough time to work on – so I’m going to cover it in this post! Here are the questions this post (and the spreadsheet) is meant to answer: What are the key factors that drive freemium profitability? If these questions interest you, keep reading :-) Article summary (for people with attention deficit!) 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). LTV = 1/(1-R) * rev Related:  Monetizingmanudeko

Todd Sattersten | Business. Books. I published Fixed to Flexible on Tuesday. Everything was going well. People were starting to read it. They were starting to talk about it. When I check my email Wednesday morning, I had an email from Evernote CEO Phil Libin: Just read your ebook. Ugh. I asked Phil if he would help me clean up the math and answer a few questions about the company. Todd: So, I seem to have messed up the math a little. Phil: It was my fault for being confusing. I ran the numbers from January 2010. The gross margin increases every month because revenue per user grows (conversion rates go up because long-time users are more likely to convert) while variable expenses per user decline (Moore’s law + efficiencies of scale). There are other sources of revenue (as well as fixed expenses), but they don’t move around much, so the gross margin is by far the most important factor. T: What other factors need to be taken into account? P: There are many other factors, enough to fill a book. P: You’re probably right.

+++ Playfish's Social Gaming Architecture Ten million players a day and over fifty million players a month interact socially with friends using Playfish games on social platforms like The Facebook, MySpace, and the iPhone. Playfish was an early innovator in the fastest growing segment of the game industry: social gaming, which is the love child between casual gaming and social networking. Playfish was also an early adopter of the Amazon cloud, running their system entirely on 100s of cloud servers. Playfish finds itself at the nexus of some hot trends (which may by why EA bought them for $300 million and they think a $1 billion game is possible): building games on social networks, build applications in the cloud, mobile gaming, leveraging data driven design to continuously evolve and improve systems, agile development and deployment, and selling virtual good as a business model. How can a small company make all this happen? Site: playfish.com Stats Platform Key Forces What are the key forces that shape Playfish's architecture?

When Should a Startup Start Charging? I’ve recently changed my long held belief that all startups should charge immediately upon the release of a new product. I now believe that non-enterprise targeted startups should only charge once you have achieved product/market fit. As explained in this earlier post, I define product/market fit as at least 40% of your active users saying they would be “very disappointed” if they could no longer use your product. The evolution in my thinking to charge only after product/market fit is based on finally working with some “normal startups.” It is safest to assume you won’t have product/market fit right out of the gate. If however, you are like most startups, you will spend an undefined period of time engaging users and evolving your product to better meet their needs. It’s Different for Enterprise Targeted Startups For startups targeting enterprises, it actually does make sense to charge before reaching product/market fit. Growing Your Startup with a Business Model

New Theme: eList- Elegant Themes Blog eList is a unique theme that opens up some cool possibilities. At its core, it is a “directory” theme, meaning simply that it can be used to store a database of user-generated listings. The purpose of your site, and the type of content being submitted by your users, is entirely up to you. eList could easily be used as a local job board, where business pay to list their available positions in a relevant category, or where residents pay to place their resumes. eList creates a front-end submission form that your visitors can use to submit their own listings. Live DemoFeatures Info 1. 2. 3. eCommerce Integration – eList allows you to place your listings behind a pay-wall. 4. 5. 6. I hope that everyone enjoys the new theme! By Nick Roach I am the founder and lead designer at Elegant Themes.

About the MIX Because you aim high... There may be some folks who are content to work on trivial problems, but you're not one of them. You're excited by the chance to bring your experience and imagination to an important, global-scale project. Because you're looking for an edge... You're constantly hunting for provocative ideas and inspiring models to boost your organization's performance, and your own. Because you have a great idea... Every radical new management practice starts out as a courageous "What if?" Because you want your innovation to spread... Progressive management practices deserve to be emulated. Because it's not easy being a renegade... Trailblazing is hard and lonely work. Because you want to be part of the solution... Tackling the urgent challenge of reinventing management for the 21st century is everybody's business.

Why I doubted Facebook could build a billion dollar business, and what I learned from being horribly wrong Facebook, early 2006Sometimes, you need to be horribly, embarrassingly wrong to remind yourself to keep an open mind. This is my story of my failure to understand Facebook’s potential. In 2006, I was working on a new ad network business that experimented a lot with targeting ads with social network data, broadly known as “retargeting” now. The idea was that we’d be able to take your interests and target advertising towards them, which would lead to higher CPMs. As part of this project, we did a meeting with Facebook when they were ~12 people. I had read bits and pieces about the company in the news, but since I was a few years out of college, I hadn’t used their product much. We met the Facebook team at their office right next to the Sushitomo on University Ave. Ultimately, we didn’t get to work with them though we did eventually sign 1000s of publishers including MySpace, AOL, Wall St. Facebook was growing fast- very fast, and impressively handled by a super young team (like me!)

Playfish Social Games Reaching 55 Million Monthly Players Electronic Arts-owned social games developer Playfish revealed that its games are played by over 55 million people every month, as well as other statistics about its releases. Tracking site AppData shows that Playfish's games reach a total of nearly 37.7 million monthly players on Facebook alone, but the company's titles are available on other platforms, too, such as MySpace. The developer points out its games have been installed 340 million times around the world. Playfish says more than 90 million virtual items are transacted daily in its games, which it claims is nine times more than the 10 million items eBay sells on any given day. The London-based company adds that users have established 57 million restaurants in Restaurant City, 2.2 million football teams in Madden NFL Superstars, 10.9 Roman cities in My Empire, 10.6 million football clubs in FIFA Superstars, and almost 25 million hotels in Hotel City.

Freemium Founders: Start Charging for Things Today! – Tony Wrigh I tend to disagree with 37Signals on a mess of things. Like a lot of successful internet pundits, they deal in absolutes and hyperbole. There’s no middle ground and there’s no “…well, it depends”. That’s just not as linkbaity. It’s probably not as fun, either. But there’s one place where I wholeheartedly agree with ‘em– if you’re in the Freemium game, start charging for your software. Price signals value. We’ve been at this for almost two years and I have very few big regrets. Some additional fabulous reading on the topic of when to charge can be read on Sean Ellis’ blog here. I agree that price is part of the process of figuring out if you have product/market fit. This is an interesting thought, but I’m not convinced. But where I think Sean is absolutely right (to be fair, I think Sean is brilliant– you should subscribe to his blog!)

Coach Entrepreneur : le coach des entreprises | Un site utilisant WordPress En lisant cet article, vous allez comprendre pourquoi vous avez eu raison de le lire tout de suite ! Il n’est pas nécessaire d’être coach depuis 15 ans pour savoir que le succès est un ensemble d’éléments complexes. Pourtant, j’ai à cœur de vous faire bénéficier des meilleures stratégies mentales pour réussir. 1er ingrédient : Agir et poser des actions Will est un garçon intelligent et cultivé qui veut réussir dans les affaires. Améliorer ses compétences est une bonne chose, mais qui ne sert à rien si vous ne passez pas à l’action. Connaissez-vous le secret pour bâtir un palais ? Joe Simpson dans « La mort suspendue » raconte son extraordinaire histoire lors d’une course d’alpinisme. Si vous voulez construire un palais, le secret, c’est de le faire une pierre après l’autre. Si vous regardez l’ampleur de la tâche, cela risque de vous bloquer ou de vous décourager ; focalisez-vous sur l’action suivante et félicitez-vous de l’avoir réussi. Le meilleur moment pour agir, c’est MAINTENANT.

7 Keys to Creating Social Media Strategy for Your Brand | design In the past few weeks I’ve experienced a decent amount of spam from social networking sites ranging from people marketing their books, selling “make money online” information, to promoting their personal brand. It’s indicative of the fact that individuals and businesses are viewing the space seriously as it takes on the mainstream spotlight. There are many ways to utilize social media to boost your brand. The key is to have a strategy around building your social proof. Let The Truth Be Told People naturally look for social proof in any given situation. Social proof is a weapon of influence by which we replicate what we see others do. For example, if you see a bunch of people lining up outside of a restaurant you tend to think the food is good or better yet, it MUSTbe good. Social proof is especially powerful in social media because of the available information from Twitter followers to LinkedIn connections. The truth is – social media is a platform for engagement and building communities. 1.

Elle a été faite au moment ou son blog était commenté par Arrington et ou il affinait le BP de Pearltrees pr la levée de fonds :-) Je te l'envoie by PED Mar 2

Enorme cet article !! Tu connais deja le pearltree de Wallen sur le Freemium ou pas ? by PED Mar 2

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