Quizlet · B2C · study flashcards app
Stay free for years, then add a low-priced subscription
Built a teacher-student network effect; guest says rivals that monetized faster failed
Workedpricingword-of-mouth
What they did
Run for the first many years with no subscription and, for a long time, no ads; after introducing a subscription, keep prices quite low. Free users generate the content and word of mouth (a cross-side network effect between teachers and students) that drive compounding growth.
What happened
Guest credits it with Quizlet's moat and brand, better retention and word of mouth, and says it is now one of the most valuable edtech companies; competitors that monetized faster ultimately failed.
In their words
Sub Club by RevenueCat · The Subscription Value Loop: A Formula for Growth – Phil Carter, Elemental Growth“And it's because Quizlet had no subscription for the first many years of its existence, didn't even have ads for a long time, and even after it introduced a subscription, kept its prices quite low, that allowed the company to build this really strong moat”
“there's this cross-side network effect between teachers and students that creates this really virtuous cycle, improves retention, improves viral word-of-mouth.”
Related topics
Get tactics like this every Monday
New tactics from the week's founder interviews, each linked to where it was said.
More from Quizlet
All 13 Quizlet tactics- Ask a few quick questions about why when people cancelFound a third of 'no longer need' churners were just done with one test
- Hire a banker to run a buyout so the founders keep buildingSold to Quizlet; revenue roughly doubled during the process
- Add a monthly plan for students who start partway through the school yearKept after testing; no numbers given
- Give lapsed users a new free trial if they left a year ago and are active againSome success in several tests; no numbers
- Win back lapsed students with content from classmates in their own courses
More from this episode
- Quizlet: Map the few user actions and loops that drive growth, then model themGuest says it made growth more systematic; no numbers
- Quizlet: Have core product own retention and growth product own onboarding and monetizationResonated with the team and executives; no numbers
- Quizlet: Let students' and teachers' flashcards rank in Google for long-tail searchesMost important of four growth loops; low-cost acquisition
- Quizlet: Copy Blinkist's honest free-trial screen that explains exactly how the trial worksGuest says a big lift in subscriber conversion and revenue; no numbers
- Quizlet: Buy a homework-help product to cover a need users already hadMoved the app into homework help; no numbers
- Quizlet: Let new users use the app during onboarding instead of describing it
- Matter: Add a feature that turns podcasts into readable transcriptsSubscriber conversion almost doubled
- Matter: Show the paywall more often and earlier, and improve its copy and imagesPaywall views more than doubled; ~30% more users subscribed
- uDocz: Survey what students would pay, then drop the Pro tier and cut the yearly price+12% subscriber conversion, +10% net subscription revenue, better margins
- Show the paywall once in the first session, then again when free uses run outGuest's go-to pattern across clients; no numbers
- Offer a discount to users who haven't paid by the time 90% of subscribers usually haveGuest calls it very effective; no numbers
- Quizlet: Estimate word of mouth from direct, branded-search and social signups per active userRevealed back-to-school and exam spikes in edtech; no numbers
- Superhuman: Ask users how disappointed they'd be without the app, then build for the fansGot past the 40% product-market fit line quickly (founder's blog post)
- Elevate: Run sales and discount promotions once someone can own themCohost calls it a huge unlock; no numbers