GTM Sauce

Mojo · B2C · social media video maker

Keep lots of features and content free on purpose

Only ~50% of payers convert on day one vs ~80% industry-wide

Workedpositioning-nicheproduct-activation

What they did

Mojo's free tier intentionally includes many features and a lot of content, less restricted than competitors, so users retain and are later converted by in-app paywall campaigns.

What happened

Half of payers convert after day one, which the guest reads as a sign of healthy retention and existing-user revenue.

In their words

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

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Michal Parizek… it's a very good signal for the app that it can actually drive a good revenue also from existing users. It's likely have a good retention and essentially a lot of existing users and it's, sounds to me like a really very healthy behavior and signal. There's a, I think, couple of things, I think why Mojo has 50%. One is that the free tier is actually, I think it's pretty good also comparing also some other competitors actually in the free tier.

Michal ParizekIt can actually, it can do quite a lot. So it's not that restricted, like maybe some other apps. There's lots of features which is actually available in the free tier, lots of content. So that's one thing. So the, let's say, generosity of the free tier and just intentional. The other aspect is that we've run also the paywall campaigns for existing users, which I think not a lot of, maybe not most of the apps actually do, and think it's actually one of the underrated things, which I think most of the apps should do it.

Michal ParizekSo essentially it's running the paywall campaign, so as you're triggering the paywall and certain behavior for existing users, either as an app open, like we did in Mojo, or after some key behavior event, like when you do something key in your app, like, I don't know, sharing something or whatever the key engagement event is. So that paywall campaign actually drove, I think, about 15% of new revenue from the existing user base, which is just …

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Tags: freemium, generous-free-tier