further rework to the documentation
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docs/archive/prp/14-freemium-business-model.md
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# 14 - Freemium Business Model Implementation
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## Executive Summary
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This document details the Package-based business model for the Fotospiel tenant app, combining free access with purchases of predefined packages. The model prioritizes user acquisition through a free test package while monetizing through value-driven upgrades. Key metrics: 5-10% conversion rate, ARPU €10-15, scalable to 100k+ users. See 15-packages-design.md for package details.
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## Model Analysis
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### Model A: Paid App (€4.99) with Free First Event
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**Pros:**
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- Higher paying user conversion (20-30% retention)
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- Premium perception for professional users
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- Stable revenue from app sales (70% net after store fees)
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- No freeloader problem
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**Cons:**
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- Lower acquisition (lower than 5% download conversion)
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- High churn if first event doesn't impress
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- Slower scaling, higher marketing costs per install (€2-5)
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### Model B: Free App with In-App Purchases (Recommended Base)
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**Pros:**
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- 10x more downloads, viral potential
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- Low acquisition costs (€0.50-1 per install)
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- Flexible pricing (starter €4.99, pro €9.99)
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- Better App Store ranking for free apps
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**Cons:**
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- 80-95% freeloader rate
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- Complex IAP setup and testing
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- Requires strong onboarding to drive conversions
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### Package-based Recommendation
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**Core Strategy:** Free app with limited test package for first event, upgrades via package purchases (Einmalkäufe for Endkunden, Subscriptions for Reseller).
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**Pricing Structure:** See 15-packages-design.md for Endkunden (pro Event: Free/Test 0€, Starter 19€, etc.) and Reseller (jährlich: S 149€, etc.).
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- **Free Tier:** Test package (30 photos, 10 guests, 3 days gallery, 1 task, standard watermark)
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- **Endkunden Packages:** Einmalkäufe pro Event with increasing limits/features.
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- **Reseller Packages:** Annual subscriptions with event limits and branding options.
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**Expected Metrics:**
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- Downloads: 50k/year
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- Conversion: 5-8% (2,500-4,000 paying users)
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- ARPU: €12 (mix of one-time + recurring)
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- Annual Revenue: €30,000-48,000 (after 30% store fees)
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## User Acquisition Strategy
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### App Store Optimization (ASO)
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- **Keywords:** "Event Foto App", "Hochzeit Galerie", "Party Foto Sharing", "Event Planner kostenlos"
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- **Screenshots:** 5-6 screens showing value (event creation, photo upload, QR sharing)
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- **Description:** 4,000 chars emphasizing "Free start, upgrade anytime"
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- **App Preview Video:** 30s demo of creating/sharing first event
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### Marketing Channels
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- **Paid Ads:** Facebook/Instagram targeting wedding planners (€1-2/install)
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- **Organic:** Wedding forums, photographer communities, local event groups
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- **Partnerships:** Affiliate program for event agencies (20% commission)
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- **Content Marketing:** Blog posts "How to create digital photo galleries for events"
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### Retention & Re-engagement
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- **Push Notifications:** "Your event ends soon - extend for €2.99" (opt-in only)
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- **Email Marketing:** Post-event surveys with upgrade offers
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- **In-App Messaging:** Contextual upgrade prompts after value demonstration
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## Conversion Optimization
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### Onboarding Funnel
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1. **Download → First Launch:** 90% completion target
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2. **Onboarding Wizard → First Event:** 80% completion
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3. **First Event Success → Upgrade Prompt:** 10% conversion
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4. **Repeat Usage → Subscription:** 20% of one-time buyers
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### A/B Testing Plan
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- **CTA Text:** "Get Started Free" vs "Create First Event"
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- **Pricing Display:** Static prices vs dynamic local currency
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- **Upgrade Timing:** After first photo upload vs after event sharing
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- **Tools:** Firebase Remote Config + RevenueCat Experiments
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## Technical Requirements
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### Frontend (React/Capacitor)
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- **IAP Integration:** RevenueCat SDK for cross-platform purchases
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- **State Management:** Context API for credits, React Query for API sync
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- **Offline Support:** Capacitor Storage for temporary event data
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- **Analytics:** Firebase for funnel tracking, RevenueCat for purchase events
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### Backend API Extensions
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- **Package Management:** `/api/v1/packages` and `/api/v1/tenant/packages` endpoints
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- **Purchase Validation:** Webhook receiver from Stripe
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- **Event Limiting:** Middleware checking credit balance before creation
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- **Subscription Sync:** Real-time updates via WebSockets (optional)
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### Database Schema Additions
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See 15-packages-design.md for updated schema: `packages`, `event_packages`, `tenant_packages`, `package_purchases`.
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## Risk Mitigation
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### Store Compliance
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- **No Paywalls Before Value:** First event creation always free
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- **Clear Descriptions:** App Store screenshots show free tier capabilities
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- **Receipt Validation:** All purchases server-side verified
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- **Refund Policy:** 14-day money-back for subscriptions
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### Technical Risks
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- **IAP Failures:** Fallback to manual credit allocation via support
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- **Sync Issues:** Offline-first approach, sync on reconnect
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- **Store Rejections:** Beta testing with TestFlight/Internal Testing
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- **Revenue Recognition:** Use RevenueCat for proper accounting
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### Business Risks
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- **Low Conversion:** Monthly A/B testing and user surveys
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- **Churn:** Re-engagement campaigns for inactive users
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- **Competition:** Regular competitor analysis and feature updates
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- **Platform Changes:** Monitor Apple/Google policy updates
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## Launch Timeline
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### Phase 1: MVP (4 weeks)
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- Week 1: RevenueCat integration, basic credit system
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- Week 2: IAP store page, purchase flow
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- Week 3: Backend endpoints, database schema
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- Week 4: Testing, beta distribution
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### Phase 2: Optimization (Ongoing)
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- Month 1: A/B testing of upgrade prompts
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- Month 2: Push notifications, email marketing
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- Month 3: Subscription model introduction
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- Quarterly: Feature updates based on user feedback
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## Success Metrics
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### Acquisition
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- Downloads: 10k in first 3 months
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- Cost per Install: less than €1.50
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- App Store Rating: more than 4.5 stars
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### Conversion
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- Free → Paid: 5% within 30 days
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- First Event → Upgrade: 15% conversion
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- Average Order Value: €8-12
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### Retention
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- Day 1 Retention: more than 40%
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- Day 7 Retention: more than 25%
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- Monthly Active Users: 20% of downloads
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### Revenue
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- Month 1 Revenue: €1,000-2,000
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- ARPU: €0.50-1.00 overall
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- LTV more than 3x acquisition cost
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This Freemium model balances user acquisition with sustainable revenue growth, leveraging the event-based nature of the app for recurring purchases while maintaining an accessible entry point.
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