GTM Sauce

Sweatcoin · B2C · app that pays you to walk

Build free-tier limits in early, then sell a plan that lifts them and removes ads

Basic plan already makes 'considerable' revenue; founder thinks it came 12-18 months late

Workedpaywallpricing

What they did

Built the free product with inherent restrictions from the start (e.g. a daily cap on coins earned, limited rewards) that can later be lifted. After reaching scale and profitability on brand partnerships and ads, launched a basic subscription: removes ads, lifts free-tier restrictions, adds costlier features that can't be given free (a walking coach in development). Model likened to Southwest adding a premium cabin: same plane, better seats. Jacob compares it to game subscriptions like Pokemon GO that boost your ability to play.

What happened

Low-effort basic subscription already brings a considerable amount of revenue; Anton says the move came 12-18 months too late because profitability made them complacent.
Stage
monetization
40:34
“we would always set a ceiling on the number of sweatcoins you can earn on a day on a given day. So because of that, you know, we needed to create a kind of economy that would be sustainable, so we introduced a bunch of restrictions early on that we actually can lift or remove.”
Anton Derlyatka
41:18
“So I think removing ads, to some users, that's a massive value proposition.”
Anton Derlyatka
33:50
“So I think that we probably took that decision to go subscription maybe a year, 18 months too late in retrospect.”
Anton Derlyatka

Related topics

Get tactics like this every Monday

New tactics from the week's founder interviews, each linked to where it was said.

More from this episode