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Season 3, Episode 18: The future of alternative app stores and payments (with Archie Stonehill)
Mobile Dev Memo Podcast
Focus on Engaging Whales in Freemium Model
In the freemium model, the key focus is on engaging high-spending players known as 'whales'. The approach is not geared towards acquiring new users or monetizing peripheral users, but rather emphasizing the premium experience for the top spenders. The success of products like Stash relies on catering to the small percentage of users who contribute the majority of the revenue. Understanding the non-traditional probability distribution of spend and engagement in this model, which is not bell-shaped but exponentially decreasing, is crucial for navigating the freemium space effectively.
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