Burner · B2C · second phone number app
Drop the $1.99 download price once there is money to cover free users
What they did
- Stage
- early
In their words
Pivots, Funding, and Building Apps That Last – Greg Cohn, Burner
Greg Cohn… think it was maybe more driven by signals that there was a consumer app here that had resonance. And we didn't invent the category of the second phone number. Google Voice predated us by a number of years. It's a free product. Skype had a variation of this. And what we did do was we reinvented it for mobile and we made it much more oriented to the privacy control oriented consumer. And the UX was just, I think, 10X better, not that I'm biased.
Greg CohnIt was better enough to generate a lot of interest and people willing to pay us a classic painkiller, not a vitamin, right? So, at that point, yeah, I think we raised an angel round. The thing we wanted to do was take the paid download off, right? Became a free download. We figured out the conversion math, and then we also launched an Android in that next six or eight months. And then we actually subsequently raised a VC round, which is its own set of things and dynamics. But again, I think that was very driven by those early signals.
Greg CohnAnd coming back to your comment about pivoting or understanding when you have that, one of the signals you can start to see once you have a little bit of traction, of course, is retention. And so, not just revenue retention, but there's any number of ways you can look at what's your DAU to MAU ratio and how often are people coming back and using an app, or what hooks can you evolve to reengage people and all that?
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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
- 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
- Let people choose on the paywall whether to take a free trialVery positive A/B test result; no numbers given
- 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-download