GTM Sauce

A subscription app · B2C · App Masters client

Drop the $1.99 monthly plan because 90% buy the $10 yearly one

Sales went down; the monthly price was the anchor that made $10/year look cheap

Failedpricingpaywall

What they did

Paywall had $1.99/month and $10/year; 90% of buyers chose yearly, so the client removed the monthly option, leaving only the $10 yearly plan.

What happened

Sales dropped. Steve's reading: without the $1.99 monthly anchor, $10/year looked expensive. His data across most apps: two plans convert better than one, three better than two.
Stage
live app

In their words

Live App Teardowns: App Growth Optimization

Play from 1:14:28
1:14:23

HWe got Jake from Cal AI.

Steve P. Young… look, I don't trust the bigger apps. They are big for a reason, right? And even then, like I had a this heated It wasn't a heated debate, but I had a debate with somebody and said, "Look, Calm does this." They were only showing one one plan yearly and I'm like, "Bro, most data most my data tells me two plans convert better than one, three plans convert better than two. That's most apps. Guess what? At the time, Calm did just have the yearly. Guess what, a month, two or three weeks later, they have their monthly back, because it works. We had one client that was doing $10 a year, just $10 a year. They had $1.99 per month, $10 year, and they're like, "Hey, 90% of everybody buys the year." So they removed the monthly from their paywall. Guess what happened to the sales, H? It went down. It went [crying sound effect] So because the $10 looked so much more attractive when you put $1.99 for the month, you're like, "Oh, that's like so cheap, $10." But if you don't take have the $1.99 anchor, people think it's kinda expensive. So that's why I like to Now every test every app is different, but don't always trust what you see with the bigger apps, cuz they're big for a reason. That means they can make a lot of mistakes where we can't. All right, last question, I'll say goodbye. Thank you, Hakim. The "I wanna run Apple Ads for my app in worldwide, so what is best strategy for segmentation? Need I run a campaign for each country?" Okay, Mo. So, Muhammad, what I would say is the best strategy is to find a country that converts pretty well, that there's low difficulty. So for me, it's Netherlands, and I happened to find this because I started a worldwide cunt- campaign using a max conversion campaign. So everybody …

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Tags: app-store, price-anchoring, plan-count, annual-plan, monthly-plan