business-modellisted

# Business model The output of this skill is **a decision with its arithmetic written down**, not a strategy essay. The arithmetic is what makes it possible to be wrong on purpose and notice later. ## Pick the model before the price | Model | Fits when | The thing that kills it | |---|---|---| | Paid up front | the value is obvious before use | no trial means no conversion signal at all | | Freemium → subscription | value compounds with use | the free tier is either useless or sufficient | | Consumable / credits | usage is bursty and costs you per unit | users cannot predict their spend and stop | | Ads | reach is large and session length is real | ad load destroys the experience that earned the reach | | Ads + removal IAP | both of the above | the paid tier competes with your own ad revenue | The studio's defaults and hard rules live in `knowledge/monetization.md` (`house-conventions`) — NO-AD zones, consent, frequency caps. Those are not negotiable by a pricing decision. ## The arithmetic, written out State each number, and **say where it came from** — measured, comparable, or assumed: ``` Price point <value> in <currency/tier> Cost to serve one user <infra + per-unit + store commission> Conversion assumption <%> (source: measured | comparable | ASSUMED) Retention assumption <month-1 / month-12> (source: ...) Revenue per install price × conversion × expected periods Break-even installs fixed cost ÷ revenue per install ``` **Ev