Business Model & Economics
Revenue Model Overview
MedMinder Pro operates on a freemium model for consumers and a B2B licensing model for health plans and pharmacies.
- Consumer Freemium: Free version offers basic reminders for up to 5 medications. Premium ($4.99/month) includes unlimited medications, caregiver access, pharmacy integration, and insights.
- B2B (primary revenue): Health plan licensing ($2-5 PMPM for high-risk members), pharmacy chain partnerships (patient engagement add-on), and pharma partnerships (adherence programs for specialty drugs).
Pricing Strategy & Tier Structure
| Tier | Target User | Price | Key Features | Usage Limits | Conversion Goal |
|---|---|---|---|---|---|
| Free | Hobbyists, trial users | $0/mo | Basic reminders for up to 5 medications | 5 medications, limited insights | 10% → Premium |
| Premium | Individuals with complex regimens | $4.99/mo | Unlimited medications, caregiver access, pharmacy integration, insights | Unlimited | 80% retention |
Customer Acquisition Economics
| Channel | Monthly Spend | Conversions | CAC | Notes |
|---|---|---|---|---|
| Content Marketing | $2,000 | 40 | $50 | SEO + blog posts |
| Paid Social (FB/LI) | $3,000 | 30 | $100 | B2B targeting |
| Google Ads | $2,500 | 25 | $100 | High intent keywords |
| Referral Program | $500 | 20 | $25 | 10% referral bonus |
| Partnerships | $1,000 | 15 | $67 | Affiliate commissions |
| Total | $9,000 | 130 | $69 | Blended CAC |
Lifetime Value (LTV) Analysis
Based on an average revenue per user (ARPU) of $4.99/month and a monthly churn rate of 5%, the customer lifetime value can be calculated as follows:
LTV = ARPU × Gross Margin % × (1 / Monthly Churn Rate) = $4.99 × 0.8 × (1 / 0.05) = $79.84
Break-Even Analysis
With a CAC of $69 and an LTV of $79.84, the break-even point can be calculated as follows:
Break-Even Units = Fixed Costs / (ARPU - Variable Costs per User) = $10,000 / ($4.99 - $1.25) = 2,525 customers
Break-Even Timeline: approximately 6 months with 35 new customers/month.
Revenue Projections (3-Year)
| Metric | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Customers | 5,000 | 15,000 | 30,000 |
| Revenue | $299,400 | $897,600 | $1,794,000 |
| Growth Rate | - | 200% | 100% |
Unit Economics Summary Dashboard
Break-even in 6 months with 2,525 customers
Funding Strategy & Use of Funds
A seed round of $750,000 is requested to support the development and launch of MedMinder Pro.
- Engineering: $400,000 (2.5 FTE)
- Clinical/Regulatory Advisor: $75,000
- Infrastructure and Compliance: $100,000
- Marketing and Pilot Programs: $175,000
Regulatory, Compliance & Legal Considerations
MedMinder Pro will operate as a Delaware C-Corp, with full compliance with HIPAA and relevant state pharmacy laws.
- Business Structure: Delaware C-Corp
- Regulatory Requirements: HIPAA compliance, state pharmacy laws
- Intellectual Property: Trademark protection for the MedMinder Pro name and logo
Business Model Risks & Mitigations
| Risk | Mitigation |
|---|---|
| Low engagement | Adaptive UX, value delivery in first session |
| Integration complexity | Start with manual entry, add integrations progressively |
| Privacy concerns | Transparent data use, easy deletion, local-first where possible |