GTM Sauce

FaithFull · B2C · calorie tracker for Christians

Raise monthly to $19.99 and quarterly to $39.99, keep annual at $59.99

Revenue per payer $32 to $38, and the pricier paywall converted better

Workedpricing

What they did

Took the winning paywall and split tested monthly $14.99 -> $19.99 and quarterly $29.99 -> $39.99 with annual held at $59.99, so annual is only ~$20 more than quarterly (about $5/month). Courage came from an accident: after the earlier $12.99 -> $14.99 test he forgot to update the Apple price, which had been $19.99, and iOS monthly conversion hadn't suffered. Now rolled out on both platforms.

What happened

ARPPU rose from $32 to $38 as most buyers went annual, and the higher-priced paywall had a higher conversion rate than the cheaper one
25:56
“this test was taking our winning paywall and increasing both the monthly and the quarterly and leaving the annual the same”
Michael Durst
“our average revenue per paid user went from $32 to $38, meaning everyone most people were going annual because of the higher monthly pricing”
Michael Durst
“of course, it's driving more revenue with the higher prices, but the conversion rate was higher.”
Michael Durst
1:16:14
“I realized that Apple never got changed, so all these monthlies were actually $19.99 and not $14.99.”
Michael Durst

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