Genesis · B2C · group of subscription apps
Sell a $1 first month with the renewal terms in small print
Drew an FTC case; the funnels named were taken down
Failedweb-to-apppaywallupsell-expansion
What they did
Alleged in the FTC complaint: '$1 for 1 month' offers with auto-renew terms hidden in small print at the bottom of the paywall, double charges, one-click upsells on unclear paywalls. Some apps' terms only allowed refunds if the user proved 30 days in a row of use with photos.
What happened
FTC sued Genesis for deceptive practices; the funnels cited were no longer live after the case was published.
“they uh hid auto-renew terms. So, they would say, "Get uh Pay $1 for to get an access uh for for 1 month," and they hid the renewal terms.”
“Um then they could uh double charge the users. They could do an upsells with just one click”
“because like eventually, these funnels were not alive after they um they published uh this case.”
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More from this episode
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- Put renewal and refund terms right next to the pay buttonRequired by Visa/Mastercard rules; no conversion numbers
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- After payment, offer a one-click add-on with its price and a 'Purchase' buttonRaises LTV; hidden-price versions convert 60-70% but anger users
- Ask for an email at checkout and email buyers a link that logs them inLets buyers find charges and cancel; no conversion numbers
- Get the email from Apple Pay, then ask for their real one after paymentAvoids losing people at an email step; email win-back adds 5-10% at most
- Turn on Stripe's renewal emails, which are off by defaultGuest says it doesn't cut revenue for apps people use; worth testing
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- Cancel subscriptions for people who pay but never open the appHealthier than handling their complaints later; no numbers
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- When a renewal fails, email a link to update the card, plus a cancel buttonGuest says it lifts revenue and keeps payments healthy; no numbers
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