Tinder · B2C · dating app
Limit free swipes per day and charge for more
Stopped mass-swiping and auto-swipers; turned into a strong revenue driver (no numbers)
What they did
What happened
- Stage
- growth
In their words
How a Single Paywall Experiment Generated $50M – Jeff Morris, Chapter One, Ex-Tinder
Jeff Morris… free? In the case of Tinder, which was specific to dating as a category, there was a certain element of, hey, we're building a network and ecosystem where if we give away everything for free, the application simply won't function. The kind of gameplay of the application starts to break down. And so we had to think a lot about the second order impact of any feature and what percentage of the population do you actually want to give that away to?
Jeff MorrisBecause if you give everyone... I'll give a really obvious example. We put a paywall on the number of swipes that you could do on a daily basis because we found there were people who were just swiping their way through literally their entire city in a very small amount of sessions or you had things like auto swipers. And so we put up that paywall also to create a better ecosystem, but it also turned out to be a great thing for monetization. So I think a lot of it is in terms of like, you should have one or two things that you charge for early on and then really following the user and following your power users in terms of where they lead you for what they want you to build. And we always thought of these things as being superpowers that you could give the user. And obviously not everybody can have the full access to those superpowers because then those features will become less valuable to the subscriber base.
David BarnardYeah, that's fascinating. Yeah. Thinking of it as superpowers, what superpowers do I want to give my users and kind of following the product demand into building those features. Did you all ever experiment during those years where you were like hardcore optimizing the revenue of pulling features in and out? So would you put something in the free tier and then, oh, wait, we really should have made that paid? How did you run those sorts of …
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More from this episode
- Put a toggle in the top bar that opens a new paid tierAbout $50M in revenue from one small A/B test
- Give each paid feature its own paywall and check its sales every morningShowed 2-3 features drive most new subs; weak ones were made free
- Offer several paid tiers, from cheap starter to big spenders at $50K a yearGuest's biggest revenue unlock at Tinder; no numbers given
- Set different prices by country, starting with fast-growing markets like India
- Polish the paywall like a core feature, e.g. add a gold shimmerGuest says it showed users they cared; no numbers
- Ask for payment only after a user gets a match and starts chatting
- Build engagement and retention first; push monetization only years laterReached 30-40M monthly users before revenue became a focus in years 4-5
- Create a revenue team with its own iOS and Android engineersGrew from 6 engineers in 2016 to 40+
- Give the first flight free with every pro feature, then lock some
- Make free users pay before they can fix their buggy first buildFrustrated users complained publicly on Twitter
- Ship a new feature every single dayBecame the default database for most major website builders
Tags: usage-limit, freemium, network-health