GTM Sauce

Mojo · B2C · social media video maker

Show the yearly plan as about $10 a month next to the $25 monthly plan

New revenue +10% in the US and +30-40% in Brazil and Mexico

Workedpaywallpricing

What they did

Added a small line next to the yearly plan stating its monthly-equivalent price (about $10/month) so it contrasts with the monthly plan (around $25). A/B tested by market.

What happened

~10% lift in new revenue in the US; 30-40% in Latin America (Brazil, Mexico), which the guest attributes to price sensitivity in lower purchasing-power markets.

In their words

How Mojo Increased ARPU 60% In Just Five Months – Michal Parizek, Mojo

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David BarnardAnything else that was part of that, that you think really drove that success, or you think you just... A lot of people experiment with this, but for some people it does seem to work where it's like the yearly plan is listed with a monthly amount, and then the monthly plan is listed at a much higher amount. Did y'all test that at all of having the monthly plan maybe way higher to where it makes a yearly plan look even better, or what won in that?

Michal ParizekYeah, yeah, we experiment with that as well. Yeah, so what we've tried and succeeded was actually a monthly plan incurring, so we essentially added a small line next to our yearly plan, which says that's the price is equivalent of, I don't know, $10 a month. And that actually worked very well in comparison into that monthly plan, which was obviously higher. The price was 25, let's say, dollars. So that showed a yearly plan is such a good deal comparing in the costs. So that actually, that worked very well and interesting, well, that actually worked very well, particularly in Latin America, in Brazil and Mexico.

David BarnardThat's super [inaudible 00:03:46]. Why do you think it performed better in Latin American countries than the US?

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Tags: price-anchoring, monthly-equivalent, yearly-plan, latam