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Flamme · B2C · couples app

Start charging in a free app when the money runs out

Barely survived; the early '15% conversion' counted renewals, so it was inflated

Mixedpaywallfinancing

What they did

Flamme was completely free through 2023. Near the end of 2023, almost out of money and unable to raise, added monetization. Mistake: calculated conversion as all paying users (new subscribers plus renewals) divided by incoming users, which showed 15% in month one and made them think they could scale.

What happened

Made just enough to survive; guest calls waiting to monetize a mistake and the 15% figure a miscalculation.

In their words

An Nayal - Full App Growth Guide 2026 - How to Make Viral Content to Get Users & Make Your App Retentive

Play from 14:20
14:01

An NayalI focused on the product too much. I didn't focus on the distribution enough. So what happened is, we were in the end of 2023, we had a product with insane retention, working really well, but we were almost out of money. We were almost out of money, we had raised a bit of money before, and we were running out of it. We had no other way to find out.

14:20

An NayalSo we then decided to monetize the product instead of going and raising more money. So this was a completely free product in that entire span of time, and we hadn't put monetization in the product, which is another one of the mistakes I made. As I mentioned, I made a lot of mistakes with Flamme as well, which I figured out along the way. We put in monetization in the product, we barely made it out of running out of money at that point, end of '23, and we brought the product back to life.

14:44

JosephSo the carrot-and-stick uh framework that you talk about for retention, you use that to bring your retention from 1 to 4 to 50% day-30 retention, and which was like higher than popular social media apps like TikTok and Instagram at the time. And how the heck do you do you make an app more retentive than TikTok? So the stick was like you send notification to warn the user that their streak is about to expire. So there's sort of like the fear of …

20:19

An NayalIt was a struggle. Uh so I started monetization, and initially, in the first month, we had a surplus of users built up, we monetized, and we had a 15% conversion rate. So I was like, "Wow, this is incredible, man. A 15% conversion to pay for every user who's coming onto the product. We have incredible product-market fit regarding monetization as well. Let's try to scale."

20:40

An NayalWhat I didn't realize is how to calculate that conversion to pay. I calculated that as anyone who is paying for the product, it could be new subscribers, it could be old renewals as well. So, let's say the the this sum in total was a thousand, and I would divide that by the total amount of users who are coming on right now.

20:56

An NayalNow the the tricky part with this is, if you're getting someone who has been on the app for a couple of months, who's renewing their membership, but you count them in this cohort, then it's not really conversion of the new users. It's just con- like who the total amount of users who are paying for your product.

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Tags: late-monetization, survival, metric-mistake