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The freemium model is cost of service FREE AS A BUSINESS MODEL
characterized by a large indicates the average cost
base of free service users the company incurs to deliver
subsidized by a small base a free or premium service to
of paying users. a free or premium user.
Users enjoy a free basic 103
service and can pay for a
premium service that offers growth & churn rate
additional benefits. specifies how many users PATTERNS
defect/respectively join
the user base.

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

percent of premium & free users price of premium service
specifies how many of all users indicates the average cost
are premium paying users or the company incurs to
free users. deliver a premium service
to a premium paying user.

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