GTM Sauce

Praycreen · B2C · pray-to-unlock phone app

Give non-payers a free version with an ad before each daily prayer

~$0.05 per user per day; ad spend paid back in 14-15 days

Workedpricingpaywall

What they did

Install-to-paid conversion was unremarkable (~2.5% as an example), meaning 97.5% of paid installs were being turned away. Because 60% of users were still praying 4 times a day at day 30, they added a free version funded by ads: users watch an interstitial ad before each prayer, about 4 ads per user per day.

What happened

Ads made about $0.05 per user per day and paid back acquisition spend in about 14-15 days.
Stage
monetization

In their words

Lotanna Ezeike - He Built a Simple $120k/Yr App, Then Sold It For Multiple 6 Figures!

Play from 8:46

Lotts… kind of different. You kind of have to find what's the strong point of your own app. Our conversion from install to paid wasn't like anything outstanding whatsoever compared to like all the other apps out there. We're kind of thinking like this, if our conversion is like 2.5%, for example, what that's basically telling us is that we are spending x amount for like let's say 100 users to come in, and only 2.5% of them are converting to paid users.

8:46

LottsAnother way of looking at that is that you're basically telling 97.5 people to fuck off. So we were like, "Okay, our retention's super good, so what we should do is actually have a free version, but then have ads instead." Because we know that 60% of people of the 100 people are still going to be here doing four prayers every single day for 30 days. So that really worked out for us, because I think we were making like $0.05 per user per day um on ads.

9:08

LottsIt took us like about 14 or 15 days to get a return on investment.

9:11

Host$0.05 a day for 30 days, it's like $1.50 per user, and it's only $0.50 cost per install. And this is for 60% of the not-converted users. This is That's like completely lost revenue if you hadn't done...

10:22

HostIs there anything else interesting to share about Praycreen?

10:25

LottsI just think generally the faith space also is also interesting. Because we did four ads a day for each person, cuz they have to watch an ad before they do a prayer, and then I kept on seeing the same ad, and it's called Whiteout Survival. Live now, guess how much money do they make a month, across both iOS and Android.

10:41

HostA month, I would guess maybe 5 million a month, I don't know.

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

Tags: ad-monetization, freemium, interstitial-ads, high-retention