Sub Club by RevenueCat · 2023-05-03

How Freemium Can Outperform Free Trials – Shaun Steingold, Momentum Labs

Shaun Steingold of Momentum Labs, which buys and runs apps (iNavX, Healthi, Mileage Log+), explains the thesis of buying apps ranked #3-5 and moving them up 2-3 spots for 50-200% revenue growth given power-law chart share, a light-touch ASO approach, and why he never uses free trials. At Healthi, reading the community is free but posting requires Pro, which kept out trolls; Pro costs $30/year against WeightWatchers ($230+) and Noom ($400+). Hosts add Fitbod's three-free-workouts model and Elevate's trial-first experience.

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8 tactics

Momentum Labs · firm that buys and runs apps

Buy apps ranked #3-5 in their category and move them up 2-3 spots

Revenue grew 50-200% per acquired app, not 5-15%

From 2015-2016, rather than build from scratch against incumbents, Momentum Labs bought apps with proven product-market fit that ranked 3rd, 4th or 5th in their category, aiming to move each up two or three spots. The logic: category share is a power law (#1 ~45%, #2 ~25%, #3 ~15%, #4 ~7%), so each spot roughly doubles revenue. They judge success on stable grossing-chart position, not bought download rank. Paid 'fair prices for great businesses'; stopped buying at end of 2019 when prices rose.

Workedportfolioexit-ma

Sub Club by RevenueCat · 2023-05-03

Healthi · B2C · diet and weight loss app

Let free users read the community, but only paying members can post

Trolls and bullies left overnight; users now name the community as what they love

Healthi built an in-app community (a 'mini-Facebook' of threads and comments). Free users can view everything and see the advice shared; writing posts requires a Pro subscription ($30/year). Reasoning: weight is a sensitive topic and fat-shaming is real; bullies and trolls won't pay. Viewing stays free because the community is a key asset that has to pull people in, and longer engagement raises the chance they buy.

Workedpaywallcommunity

Sub Club by RevenueCat · 2023-05-03

Momentum Labs · firm that buys and runs apps

Skip the free trial; give a useful free version with a clear limit instead

Guest says trials never beat plain freemium in his or mentored apps; no numbers

None of the guest's apps has ever offered a free trial; Healthi has a free tier and a paid Pro plan. His reasons: a card-upfront trial creates two moments of pause (entering the card, then deciding at day 7/14) and takes something away, while freemium lets users hit the upgrade screen from a positive experience with a clear free limit. He advises A/B testing which features sit behind the paywall ('put this feature on the side of the paywall, now move it free').

Workedpaywallpricing

Sub Club by RevenueCat · 2023-05-03

Momentum Labs · firm that buys and runs apps

Fix a bought app's store listing once, then mostly leave it alone

When Momentum Labs acquires an app, it does a lot of ASO work and cleanup up front, then deliberately barely touches it afterwards, prioritizing longevity and consistency of ranking performance.

Unknownaso

Sub Club by RevenueCat · 2023-05-03

Healthi · B2C · diet and weight loss app

Charge $30 a year and offer a free version where rivals charge $230-400

Guest calls it the 'sweet spot' of Healthi's success; no numbers

Healthi positions as the low-cost provider in diet apps: a free product plus Pro at $30/year, which the guest says matches the paid service of WeightWatchers (from $230+/year) and Noom (from $400+/year), neither of which has a free product. Host suggests the low price also helps retention over years.

Workedpricingpositioning-niche

Sub Club by RevenueCat · 2023-05-03

Healthi · B2C · diet and weight loss app

Add paid coaching and an online store of branded diet products

Healthi grew from an app into a full diet and weight-loss business, adding paid coaching and an e-commerce store selling branded products for the weight-loss journey, aiming to monetize members beyond the app subscription.

Unknownupsell-expansion

Sub Club by RevenueCat · 2023-05-03

Fitbod · B2C · strength workout app

Give three free workouts with every feature unlocked, no trial signup

Host loved it and now pays $50-60 a year; one user's experience

Fitbod lets new users open the app and work out with no trial signup: three free workouts with every feature unlocked. After the first workout it says 'You've got two more workouts for free', then asks for a subscription.

Workedpaywallonboarding

Sub Club by RevenueCat · 2023-05-03

Elevate · B2C · brain training app

Make the free version thin so almost everyone has to start a trial

Big jump in trial starts, but lower user affinity, per co-host

At Elevate, about seven or eight years ago, the team settled on a model where users had to start a trial or the experience would be 'pretty bad', partly because non-paying users generated many support tickets.

Mixedpaywall

Sub Club by RevenueCat · 2023-05-03

Numbers mentioned

Who	Metric	Value	Context	When
aggregateApp Store category revenue share by rank position, in most categories (guest's figures)	share	45% approximate	Share of category held by the #1 app; #2 25%, #3 15%, #4 7%	9:34
aggregateApp Store category revenue share by rank position, in most categories (guest's figures)	share	25% approximate	Share held by the #2 app	9:34
aggregateApp Store category revenue share by rank position, in most categories (guest's figures)	share	15% approximate	Share held by the #3 app	9:34
aggregateApp Store category revenue share by rank position, in most categories (guest's figures)	share	7% approximate	Share held by the #4 app	9:34
aggregateShare of an app category controlled by the top apps (circa 2015)	share	95% approximate		8:19
Momentum Labs	growth rate	+50–200% approximate	Revenue growth of acquired apps when moved up 2-3 spots from rank 3-5 in their category	9:34
Healthi	price	USD 30/year	Healthi Pro subscription	37:28
WeightWatchers	price	USD 230/year approximate	Starting price, 'more than'; no free product	37:51
Noom	price	USD 400/year approximate	Starting price, 'over'; no free product	37:51
Fitbod	price	USD 50–60/year estimate	Host's recollection of his Fitbod subscription	5:30
aggregateApps tracked by Superwall (per Jake Moore, relayed by host)	drop off	60% approximate	Share of people who tap the purchase / start-free-trial button, then dismiss the payment sheet without paying	28:59
benchmarkShare of a freemium app's users who are premium at any given time (co-host's guess)	share	10% estimate	'Sub-10%'; so ~90% of support and server costs come from non-paying users	33:08