fotospiel-app/docs/prp/14-freemium-business-model.md

14 - Freemium Business Model Implementation

Executive Summary

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.

Model Analysis

Model A: Paid App (€4.99) with Free First Event

Pros:

• Higher paying user conversion (20-30% retention)
• Premium perception for professional users
• Stable revenue from app sales (70% net after store fees)
• No freeloader problem

Cons:

• Lower acquisition (lower than 5% download conversion)
• High churn if first event doesn't impress
• Slower scaling, higher marketing costs per install (€2-5)

Model B: Free App with In-App Purchases (Recommended Base)

Pros:

• 10x more downloads, viral potential
• Low acquisition costs (€0.50-1 per install)
• Flexible pricing (starter €4.99, pro €9.99)
• Better App Store ranking for free apps

Cons:

• 80-95% freeloader rate
• Complex IAP setup and testing
• Requires strong onboarding to drive conversions

Package-based Recommendation

Core Strategy: Free app with limited test package for first event, upgrades via package purchases (Einmalkäufe for Endkunden, Subscriptions for Reseller).

Pricing Structure: See 15-packages-design.md for Endkunden (pro Event: Free/Test 0€, Starter 19€, etc.) and Reseller (jährlich: S 149€, etc.).

• Free Tier: Test package (30 photos, 10 guests, 3 days gallery, 1 task, standard watermark)
• Endkunden Packages: Einmalkäufe pro Event with increasing limits/features.
• Reseller Packages: Annual subscriptions with event limits and branding options.

Expected Metrics:

• Downloads: 50k/year
• Conversion: 5-8% (2,500-4,000 paying users)
• ARPU: €12 (mix of one-time + recurring)
• Annual Revenue: €30,000-48,000 (after 30% store fees)

User Acquisition Strategy

App Store Optimization (ASO)

• Keywords: "Event Foto App", "Hochzeit Galerie", "Party Foto Sharing", "Event Planner kostenlos"
• Screenshots: 5-6 screens showing value (event creation, photo upload, QR sharing)
• Description: 4,000 chars emphasizing "Free start, upgrade anytime"
• App Preview Video: 30s demo of creating/sharing first event

Marketing Channels

• Paid Ads: Facebook/Instagram targeting wedding planners (€1-2/install)
• Organic: Wedding forums, photographer communities, local event groups
• Partnerships: Affiliate program for event agencies (20% commission)
• Content Marketing: Blog posts "How to create digital photo galleries for events"

Retention & Re-engagement

• Push Notifications: "Your event ends soon - extend for €2.99" (opt-in only)
• Email Marketing: Post-event surveys with upgrade offers
• In-App Messaging: Contextual upgrade prompts after value demonstration

Conversion Optimization

Onboarding Funnel

1. Download → First Launch: 90% completion target
2. Onboarding Wizard → First Event: 80% completion
3. First Event Success → Upgrade Prompt: 10% conversion
4. Repeat Usage → Subscription: 20% of one-time buyers

A/B Testing Plan

• CTA Text: "Get Started Free" vs "Create First Event"
• Pricing Display: Static prices vs dynamic local currency
• Upgrade Timing: After first photo upload vs after event sharing
• Tools: Firebase Remote Config + RevenueCat Experiments

Technical Requirements

Frontend (React/Capacitor)

• IAP Integration: RevenueCat SDK for cross-platform purchases
• State Management: Context API for credits, React Query for API sync
• Offline Support: Capacitor Storage for temporary event data
• Analytics: Firebase for funnel tracking, RevenueCat for purchase events

Backend API Extensions

• Package Management: /api/v1/packages and /api/v1/tenant/packages endpoints
• Purchase Validation: Webhook receiver from Stripe
• Event Limiting: Middleware checking credit balance before creation
• Subscription Sync: Real-time updates via WebSockets (optional)

Database Schema Additions

See 15-packages-design.md for updated schema: packages, event_packages, tenant_packages, package_purchases.

Risk Mitigation

Store Compliance

• No Paywalls Before Value: First event creation always free
• Clear Descriptions: App Store screenshots show free tier capabilities
• Receipt Validation: All purchases server-side verified
• Refund Policy: 14-day money-back for subscriptions

Technical Risks

• IAP Failures: Fallback to manual credit allocation via support
• Sync Issues: Offline-first approach, sync on reconnect
• Store Rejections: Beta testing with TestFlight/Internal Testing
• Revenue Recognition: Use RevenueCat for proper accounting

Business Risks

• Low Conversion: Monthly A/B testing and user surveys
• Churn: Re-engagement campaigns for inactive users
• Competition: Regular competitor analysis and feature updates
• Platform Changes: Monitor Apple/Google policy updates

Launch Timeline

Phase 1: MVP (4 weeks)

• Week 1: RevenueCat integration, basic credit system
• Week 2: IAP store page, purchase flow
• Week 3: Backend endpoints, database schema
• Week 4: Testing, beta distribution

Phase 2: Optimization (Ongoing)

• Month 1: A/B testing of upgrade prompts
• Month 2: Push notifications, email marketing
• Month 3: Subscription model introduction
• Quarterly: Feature updates based on user feedback

Success Metrics

Acquisition

• Downloads: 10k in first 3 months
• Cost per Install: less than €1.50
• App Store Rating: more than 4.5 stars

Conversion

• Free → Paid: 5% within 30 days
• First Event → Upgrade: 15% conversion
• Average Order Value: €8-12

Retention

• Day 1 Retention: more than 40%
• Day 7 Retention: more than 25%
• Monthly Active Users: 20% of downloads

Revenue

• Month 1 Revenue: €1,000-2,000
• ARPU: €0.50-1.00 overall
• LTV more than 3x acquisition cost

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.