Step 1: On the fX Variables Section start by building your Freemium to Paid Trial Users Funnel.
For this example, we used the following variables:
# Website Visitors: growing at 10% each month
% of Sign-Ups from Website: 10%
Total Freemium Trial Users
% of Freemium to Paid Conversion Rate: 7%
Sum of Freemium to Paid Subscribers
Our forecasted # of Website Visitors led to a 10% Freemium Sign Up Rate -> 7% Paid Trial Conversion for the next month since our Free Trial is for 30 days.
Step 1a: Enter Fixed Variables
Sign-Ups: 10% Sign Up from Website Visitors
% of Freemium to Paid Conversion Rate
Step 2a: Forecast # of Website Visitors with 20% month over month growth:
Next, we entered our initial number of Website Visitors and forecasted our Website Visitors Growth over time.
Step 2b: Forecast Free Trial Sign-Ups from Website Visitors
Step 2c: Forecast Free Trial Conversions
Since we offer a 30-day trial, we started our freemium trial conversions in October.
The next step is to apply this to a revenue stream. Go back to the Revenue Section: