Market size

Serviceable Addressable Market: 136.8M paying customers / 6.6B ARR

https://docs.google.com/spreadsheets/d/1Kp0Uu8qiv8aFEkmyVDInKg19OZ6sUJx8k46-W3iqDZ0/edit?pli=1#gid=1314022016


Business model

Freemium SaaS benchmarks - free to premium conversion rate

CR Company source Year
6% 6% after 2 years; 4.9% of MAUs — https://www.fastcompany.com/1659121/evernote-ceo-phil-libins-3-steps-freemium-success (2010) & https://techcrunch.com/2009/12/30/evernote-two-million/ 2009
1-10% https://techcrunch.com/2012/11/04/should-your-startup-go-freemium/ on companies like 37signals, Dropbox, Evernote, GitHub, HootSuite, New Relic, SurveyMonkey, Weebly, Zendesk 2012
4% 4% — https://www.forbes.com/sites/victoriabarret/2012/11/13/dropbox-hits-100-million-users-says-drew-houston/#66e5bb007586’s % paid of total userbase 2012
30% Slack 2014

Freemium VS Free trial research and benchmarks

Projections

Total users CR Paying users Premium tier Price Pro tier Price MRR ARR
50.0K 2.00% 1,000 80.00% $4 20.00% $6 $4,400 $52,800
100.0K 2.00% 2,000 80.00% $4 20.00% $6 $8,800 $105,600
250.0K 2.00% 5,000 80.00% $4 20.00% $6 $22,000 $264,000
500.0K 2.00% 10,000 80.00% $4 20.00% $6 $44,000 $528,000
750.0K 2.00% 15,000 80.00% $4 20.00% $6 $66,000 $792,000
1.0M 2.00% 20,000 80.00% $4 20.00% $6 $88,000 $1,056,000
2.0M 2.00% 40,000 80.00% $4 20.00% $6 $176,000 $2,112,000
5.0M 2.00% 100,000 80.00% $4 20.00% $6 $440,000 $5,280,000
10.0M 2.00% 200,000 80.00% $4 20.00% $6 $880,000 $10,560,000
Total users CR Paying users Premium tier Price Pro tier Price MRR ARR
50.0K 5.00% 2,500 80.00% $4 20.00% $6 $11,000 $132,000
100.0K 5.00% 5,000 80.00% $4 20.00% $6 $22,000 $264,000
250.0K 5.00% 12,500 80.00% $4 20.00% $6 $55,000 $660,000
500.0K 5.00% 25,000 80.00% $4 20.00% $6 $110,000 $1,320,000
750.0K 5.00% 37,500 80.00% $4 20.00% $6 $165,000 $1,980,000
1.0M 5.00% 50,000 80.00% $4 20.00% $6 $220,000 $2,640,000
2.0M 5.00% 100,000 80.00% $4 20.00% $6 $440,000 $5,280,000
5.0M 5.00% 250,000 80.00% $4 20.00% $6 $1,100,000 $13,200,000
10.0M 5.00% 500,000 80.00% $4 20.00% $6 $2,200,000 $26,400,000

Additional revenue potential