This template allows you to calculate expected User numbers and Revenue from your initial website visits and a few definition parameters.
Set the Start and End dates for your projections - you can run your calculations out over any number of years.
Set the initial number of website visits you expect each month and the anticipated growth rate.
Define your pricing structure in the Pricing Monthly table.
In the initial data we anticipate that 4% of people who visit the website will sign up as freemium tier users one month later. Of these, 25% will convert to Tier 1 3 months later. You can add more tiers if you need them.
The charts show you at a glance how your business can be expected to grow. Use the pie charts to understand the proportion of users and of revenue coming from each tier in each year
Refining the Growth Rate
Once you are happy with your initial projections, you can visit the Growth dashboard to refine your growth rate.
We know that growth will not continue exponentially for ever so set a taper rate to slow the rate of growth over time.
In the initial months, if you start from small number of website visits you might expect growth rates to be much higher
Use the Manual Adjustment measure to over-ride the general growth rate.
Using these tweaks will allow you to model the classic growth curve which rises steeply at first but flattens out over time.
Varying Assumptions
You can add extra dimensions to the basic assumption values to compare different scenarios or vary prices over time.
The results will automatically update to reflect the dimensions you have added
