Burner · B2C · second phone number app
Let people choose on the paywall whether to take a free trial
Very positive A/B test result; no numbers given
What they did
What happened
- Stage
- growth
In their words
Pivots, Funding, and Building Apps That Last – Greg Cohn, Burner
Greg Cohn… their numbers and there was a lot of support volume. But using that as a way to say, "Well, you may be done with this transaction, but maybe you want a new number." And so, we do retain a certain number of people into a second shot there. And ultimately, it's about understanding those users, right? But what's been crazy, and we're well over 10 years into this company and there's still, the expression is the juice is worth the squeeze, right?
Greg CohnThere's still these optimizations that have meaningful... We're not talking about tiny bits of basis point types of little optimizations on whether we underline or what color blue we're using, right? This is a meaningful shift of users when we introduce a new plan. We recently tested making the free trial optional instead of default, and that was a very positive test for us, interestingly. This is a good example of something that was a little bit trendy. There was somebody out there talking about radio buttons at the free trial paywall. And it came in the door to our company through that dialogue in the app space and the app growth community.
David BarnardYeah, we've talked about it on the podcast.
Greg CohnYeah. But internally we said, There's an authentic reason for it, isn't just a hack," right? It's like people come in, they want a phone number, they want our product, and some people want to make sure they lock it in, right? They don't want to lose it. They really want to custom, "No, no, no, I don't need a trial. I want to buy it." And then other people, "I'm not sure. I'm not sure I want to pay for this, et cetera, who give them the free trial." And so, let them self select. And that's a lot of the nuance of that. But it gets more complicated when we get to, I think, more robust features for those users.
Greg CohnSo, you can separate locals and tourists, not just at the paywall and the skew, but in terms of the actual features. So, an example of something that's in our premium bundle, I gave one earlier around the phone number lookup, but we also have an AI voicemail classifier, not in itself a hugely profound feature. We have some other improvements like custom icons and higher quality video messaging, things like this that a tourist wouldn't care about, …
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
- Test a throwaway phone number by posting it in real Craigslist adsFlood of calls and 10-100x the response of the old app; confirmed a real problem
- Demo the unreleased app to people at SXSW and collect a waitlistNew York Times interview and a panel slot; $50K revenue on launch day
- Charge $1.99 upfront and price credit packs to cover phone costsAbout $50K revenue on launch day
- Drop the $1.99 download price once there is money to cover free users
- Try a freemium version of an app where every free user costs moneyDidn't scale without lots of capital; stayed a premium, paid-first app
- Skip the next VC round and run the app at breakeven insteadBreakeven or profitable for 6-8 years, grew past $10M a year
- Add a monthly and annual plan with unlimited texts, calls and photosBiggest single jump in revenue in company history; subscriptions now 90%+ of revenue
- Phase out one-off credits so everyone goes through a subscriptionFairly high churn from short-term users; founder now thinks credits might have fit them better
- Capture people already searching for a second phone number instead of running brand adsSeveral million downloads a year of high-intent users; press-driven users didn't convert
- Add caller lookup for unknown numbers to the premium planVery popular and a driver of premium upsells; founder didn't expect it to win
- Offer 8 plans so short-term and long-term users pick what fits
- When someone deletes their number, offer them a new oneRetains some users into a second number; 20-30% of new subs are returning users
- Add a white-label VPN inside the main app's premium planDrove a lot of premium-tier growth, but cost more to build than it should have
- Launch separate robocall-blocking and business-number appsNeither got real traction; one was killed by an Apple feature
- Use paywall tools so the product team can launch tests without engineersFrom 1-2 paywall tests a month to several times that; about 1 in 4-5 wins
- Judge paywall tests by projected customer lifetime value from day-8 and day-30 data
- Buy small apps that fit your users' needs and sell them inside your main app
Tags: free-trial, trial-toggle, radio-buttons, self-selection