Figure 2From “What is freemium?”
A freemium price list record
Write down the free version, the value of a free user, the price ladder, the free version's rating, the baseline and the window before the price list changes.
Figure 2A freemium price list record
Source: Author's decision worksheet. The free and free-value fields follow Pauwels and Weiss (2008), pp. 15 to 17, 25 and 29; the price and window fields follow Gu et al. (2018), pp. 15 to 17 and 20 to 21; the rating field follows Liu et al. (2014), pp. 344 to 346; the baseline field contrasts the designs of all three. The fields are reader inputs; no company data is supplied.

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Each line names a claim related to this exhibit, its source, and how it was checked.
- B FRM-OWN-C3 A freemium price list is recorded in one row per paid version: what the free version gives and holds back, what a free user is worth per year and for how long, each paid price against the existing paid version, the free version's rating (a field resting on a result Liu et al. report as weaker for games and entertainment apps, named after G5 F1), the baseline (randomized arm, model forecast or none) and the window before and during; a model forecast and an observational panel answer weaker causal questions than a randomized arm; illustrated with a hypothetical B2B software firm adding a dearer paid plan, whose free accounts are not worth advertising revenue and whose worth none of the studies measures, tested by random assignment of comparable accounts or regions with equal before and during windows, naming the risk that buyers see both price lists; each paid version needs a willingness to pay estimate.Author worksheet grounded in PW08-C2, PW08-C4, GKM18-C3, GKM18-C5, GKM18-C8 and LAC14-C4
Grades: A, verified against the printed page of the primary source · B, primary source, text layer only · C, authoritative secondary · D, reported.
From the essay
Pricing & revenue architecture
What is freemium?
Freemium is a pricing choice: a basic version at a price of zero beside one or more paid ones. Studies of books, web content and apps show the trade-offs.
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