Mojo · B2C · social video editing app
Raise prices above other video apps to aim at small businesses
Revenue per user up about 50%; lighter users churn more
Mixedpricingpositioning-niche
What they did
Benchmarked prices of video and photo editing apps and chose to charge more than most, targeting prosumers such as small businesses and agencies (some users run agencies on Mojo with freelancers), since casual users give weak signal in a freemium app. Raised prices through tests; annual price now around $60-70. Accepts complaints in reviews and interviews from casual users.
What happened
ARPU up roughly 50%; each increase makes lower-value users who tried the product churn more. Tiers considered but not tried because of complexity.
- Stage
- growth
In their words
Sub Club by RevenueCat · Growing to $1M MRR with Paywall and Pricing Experiments — Francescu Santoni, Mojo“In our case, it was charging a bit more, because also it was profitable a bit more for us, but also targeting a bit more pro-sumer users, like small businesses and so on.”
“I think IRP increased in the range of plus 50% at some point.”
“Because every time we increase the price, we also make those part of the user that tried the product, but then at some point they don't get enough value so they churn more.”
Related topics
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More from Mojo
All 22 Mojo tactics- Show only the yearly plan first; tuck monthly behind a 'view all plans' buttonYearly plan uptake up ~15-20 points; one of three tests behind a 60% ARPU lift
- Show the yearly plan as about $10 a month next to the $25 monthly planNew revenue +10% in the US and +30-40% in Brazil and Mexico
- Use a long scrolling paywall with reviews and a free vs pro comparison in JapanNew revenue +20% in Japan; failed in the US, where a clean video paywall won
- Show free users a paywall when they open the app, at most once a week~15% of new revenue from existing users; no complaints in reviews or support
- Keep a generous free tier, then show free users a paywall at launch once a weekAbout half of conversions come after day 0 vs ~15-20% industry-wide
- Check 7-day cancellations before keeping a higher price that won on early revenueRejected a winning higher price after a yearlong model showed lost long-term revenue
More from this episode
- Mojo: Ship a rough first version in 2 months and charge from day one30 free trials on launch day, against a goal of one
- Mojo: Show the paywall at the end of onboarding, before people try the appStill brings in most free trials today
- Mojo: Give one person all paywall tests; test big changes first, then small onesMany experiments run by one person; founder credits it for monetization gains
- Mojo: Double the price in Turkey to keep up with inflationTested and rolled out; founder says the effect was positive, no numbers
- Mojo: Make a new kind of Instagram story people ask about, so users spread the appGrew to several hundred thousand dollars a month with $0 on ads
- Mojo: Pay influencers in new countries to post about the app on their accountsUnprofitable at first; Brazil took off weeks later and is now a top 3-5 country
- Mojo: Push yearly plans so ad spend pays back in about 30 daysSkips LTV prediction entirely; no results reported
- Mojo: Match each week's ad spend to that week's trials, by country and platform
- Mojo: Put off email and push campaigns while they would add little growthReached $1M+ monthly revenue without CRM; expected gain was single digits