GTM Sauce

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)

Workedpaywallpricing

What they did

Put a paywall on the number of swipes a free user can make per day, after seeing people swipe through their entire city in a few sessions and use auto-swipers. The goal was a healthier marketplace; monetization was a side benefit. General principle: charge for one or two things early, then follow power users to decide which 'superpowers' to gate, considering what share of users should have each one.

What happened

Improved the ecosystem and 'turned out to be a great thing for monetization'.
Stage
growth

In their words

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

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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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Tags: usage-limit, freemium, network-health