GTM Sauce

Coconote · B2C · AI lecture note-taker

Give one free note, then require a free trial

Credited with early cash flow; no numbers

Unknownpaywall

What they did

Users can make one note for free, then must start a free trial; almost no free tier. At launch they also tested trial vs no trial (result not given).

What happened

Credited with helping early cash flow.
Stage
launch

In their words

Bootstrapped to $6.7M ARR and an Exit to Quizlet in 2 Years – Brett Bauman & Zack Hargett, Coconote

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David BarnardTargeting students, I imagine, made that especially hard. I'm honestly surprised at the whole story of Coconote in that college students and high school students are famously hard to monetize. So let's dig into how did you get kids to pay for your app and what was the price and did you experiment with pricing?

Brett BaumanYeah, great question. Definitely did a lot of experimentation. I think we've tried to always have something running. Even at launch, we were testing should there be a free trial or not? The college student archetype, I would say, didn't really get to us. We didn't want that to limit us from charging a lot of money. We wanted to be a premium product and be seen as a premium product.

Brett BaumanI think that Zack and I kind of just are product builders who feel like we want to put something out that has a lot of craft and charge for it is part of it. Probably also not knowing what our costs would be was also part of it. So we put the app out charging $99 per year and $19.99 per month.

Jacob EitingIt's also nice that in terms of not having ... It's being so levered on ad spend. It usually allows you to go cheaper, but I don't know. I mean, you're a bootstrap company, it's better to have fewer, higher paying customers. It really is. Maybe this was mentioned, but there was no freemium, right? So after a week, can I keep using it in any way, or am I done?

Brett BaumanYeah, you hit on a few good things there. You can make one note for free without starting a trial and that's it.

Jacob EitingBasically a hard paywall, not quite, but essentially a hard paywall.

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Tags: hard-paywall, free-trial, trial-test