GTM Sauce

Halo AI · B2C · AI photo editing app

Let people skip the first paywall, then show another when they hit submit

Two paywalls together beat one hard paywall in repeated tests; each converts 16.5%

Workedpaywallonboarding

What they did

Onboarding paywall is skippable; users can browse templates (hairstyles, decor, tattoos, cartoons) and upload a photo and write a prompt. On tapping send, they are asked to sign in and then hit a gated paywall; the core feature can't be used without paying.

What happened

Combined conversion is higher than a single hard paywall, seen in multiple tests; both paywalls convert 16.5%.

In their words

Dillion Verma - 0 to $300k/mo in 45 days with my ai app (just copy me)

Play from 41:14
41:12

JosephSo, this is one experiment. Is this like the winning one?

41:14

Dillion VermaSo far, the weekly's been really good for us, so we've been just running with weekly. We have tested some yearly in the past. We went away from that, but we'll also test that again. But our standard go-to so far has has been weekly and yearly. I think also this is another example. This is just trial cancel paywall, but it's like a different use case. But, yeah, to be honest, like that that's like the the main overall. So, weekly, yearly. I have a bunch of other paywalls for different different cases or scenarios like production abandon or if they cancel the trial. We also have an interesting setup where we have two paywalls for our onboarding, and the combined two paywalls actually have a higher conversion rate from what we've seen from our testing. So, if we go over here, this is an example of what that looks like.

41:54

Dillion VermaThe the non-gated and gated paywall, both have 16.5% conversion rate. But what's happening here is we present users with a paywall during onboarding, but they're allowed to skip it. They can close it and skip it and move on and get into the application, and they can go into the application, they can like look around for a bit and like do whatever they want, but then once they want to take an action in the application, the second paywall comes up, which is the gated paywall, this one over here. Both of these paywalls combined have a higher conversion rate than just having one alone, and we've seen this like multiple times.

42:24

JosephThat's very interesting. So, essentially, it is a hard paywall because you can't access the core functionality of the app unless you pay, but that for you has outperformed just putting one hard paywall and not allowing the user to like poke around. Do you have any theories for why this is happening?

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Tags: soft-paywall, gated-paywall, double-paywall, sign-in-before-paywall