Re:Startuplet financial model, users
by DenisM on Thursday October 23, 2008 @11:25PM
(#342013)
I think I'm missing something. Each month there are new visitors, some of them convert to regular users. So there is a small amount of regular users. However, those users do not rollover to next month - they just disappear. Even the premium users disappear. This can't be right - some regular users should stick around for next month. They even have a name for it - "churn rate" (percentage of people dropping off each month).
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Posted an update here - http://a.khavr.com/2008/10/24/startuplet-financial-model-upd...
Yes, you're right. That's why I've called the model "simplistic".
It already has lots parameters to deal with and, more important, it consistently underestimates your userbase - which is good while you're planning.
Though, point taken, soon I'll post an updated version.