GTM Sauce

Value Study · B2C · art reference app

Give existing users 3 months' notice before charging for a free app

90-99% of existing users happy to pay; new users complained

Workedpricingcustomer-support

What they did

App was free for years; the developer slowly raised charges, giving existing users three months' heads-up before the change.

What happened

An estimated 90-99% of existing users were happy to pay; new users were the ones who complained.

In their words

Live App Teardowns: App Growth Optimization

Play from 17:33
17:29

In-App AudioEight years he gave this place.

Steve P. Young… for you, and we're doing the same tests on our app. But when I see a $3 per year, I almost think the app sucks, and when I see a $10 purchase, I almost think the app sucks as well. So usually in the US, the higher the price, the more value we tend to put on it. So think about that, especially I know it's usually like a shocking thing when people outside of the US hear hear this knowledge, and that's why I'm only telling you, cuz I'm gonna assume you're not in the US depending on the way you because of the way you spell color. But that's what I would do: play around with the price to find the right one that actually gets you the highest revenue per install, right? Yep, UK. Okay, haha. "It was free for years, so I've slowly upped the charging, yeah, in the UK." Yeah, so in the UK maybe you leave it the same, but in US audience like maybe think about like 20 bucks annually and then $30 lifetime. That's what we're gonna try with our utility apps that have way probably less features than yours, and I'll give you the feedback on that. But that's based off of Chris's interview. And so my my sort of like mentality moving forward is take all the things that we learn from these podcasts, and I know you guys learn a ton, too, and try to implement them right away, and then try to give you guys data back on like, "Hey, here's what's working." So we have a few tests right now: that two-paywall tests I'm running for one of my apps right now …

46:36

HYeah, yeah, there is an option over there at the bottom, redeem code. Go back. Go back.

1:09:38

HEyewitness. [crying sound effect]

Steve P. Young… you do a hard paywall. And so it worked. And now granted, this was from uh fudge, Moscone, I know his first, but it's fading me. Anyways, Superwall and Appstack has an integration that allows you to do that, and he said it worked really well for him. So all his paid traffic would get a hard paywall, where all the organic traffic would get a soft paywall and have the X. But, Juju, every traffic source has a paywall, so definitely make sure every traffic source has a paywall, but you may wanna show a hard one for the paid traffic, just to mitigate some of that one-star reviews for that. That's sort of my hypothesis. All right. All right, here's what Shane says, "I did free for a long time. I would say 90% 99% of the existing users were more than happy to pay. I gave them three months' heads up." That's awesome. "New haters [laughter] hate it." Yeah. [laughter] Uh, "By the way, I'm not the Patrick in the community." Yeah, it was Paul's, my bad. Okay. "No, I'm named after my father." [laughter] Cool. And Shane says, "Thank you so much for Thank you so much, great video, and appreciate being able to ask questions, hear your thoughts." You bet. "Where can we ask questions?" [laughter] Literally where you're asking this. Funny, unless you're making a joke. H? I had a question, so I think I answered it. Who won the dad joke round? Wait, H?

1:13:57

HYou won, Steve.

Get tactics like this every Monday

New tactics from the week's founder interviews, each linked to where it was said.

More from this episode

Tags: app-store, free-to-paid, advance-notice, gradual-price-increase