Virtual Items Lifetime Value Model

What is your LTV? Can you actually re-invest the LTV cash based on your retention rate, ARPU, and registration funnel?

customer acquisitionentrepreneurshipfreemiumlifetime valueltvprofitabilitystartupvirtual goodsvirtual items

Daniel James co-hosted a talk with me in 2008 on LTV (Lifetime Value) metrics for virtual goods and subscription goods based businesses.

In our takl, we spent some time working on an excel spreadsheet model for a fremium business that we unfortunately did not have enough time to work on. Good news! You'll find everything you need in this model!

- Andrew Chen,

This business tool includes
1 Excel Model, 1 pdf supporting article

Andrew Chen offers you this business tool for free!

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Further information

A few questions this model is going to answer for you:

1/ What are the key factors that generate a freemium's business model profitability?
2/ How can you acquire customers as a freemium business?
3/ LTV (Lifetime Value), what drives it?
4/ How do all these variables work together, influence each other?

If you want answers to these questions, well the model and supporting article is for you! :)

Andrew Chen,


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