GTM Sauce

An AI website builder · B2C · company the guest knows

Make free users pay before they can fix their buggy first build

Frustrated users complained publicly on Twitter

Failedpaywall

What they did

An AI website builder could not afford to let freemium users debug their initial builds, so users who prompted a buggy site were pushed into a subscription before seeing a working result.

What happened

Users were frustrated and complained on Twitter; guest would instead give paying users full access to the best working product.

In their words

How a Single Paywall Experiment Generated $50M – Jeff Morris, Chapter One, Ex-Tinder

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David Barnard… subscriptions, you might not really understand just how bad your retention is until 12 months later. And there's hints of it. You can look at auto-renew status and stuff like that. But any kind of additional advice or thoughts on who should be trying that freemium model first versus maybe the apps that do work better with that flipped on its head, monetization, engagement, retention, which seems like most apps are kind of doing that today.

Jeff MorrisIt very much depends on the category. If I was building an app today, I'd probably build more premium experiences that don't sacrifice product quality if you were to monetize. So example being like there's a website builder I know well, they're more of an earlier stage company and it's a really popular product within its segment, but the challenge they had with Freemium was just users ... So if you build a website, whether it's on a Level or Bolt, you obviously have a fair amount of debugging that you have to do within any product that you create. And they actually couldn't afford to let their freemium users debug the initial builds. And so if you look at Twitter for that product, people were really frustrated because they would have some idea, they'd prompt the app, and then it would be buggy, and then they'd be pushed into some subscription to make that happen.

Jeff MorrisThere's not a payoff of a successful outcome before you're asking people to open up their credit cards. So I think for something like that, I would probably just say, hey, we want everybody who pays for the product to really have full access to the best working version of our product. And so you're kind of getting people who are trying to monetize before they have that magic moment with their customers, which like at Tinder, you wait for somebody …

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Tags: freemium, paywall-timing, ai-costs