TalkingParents · B2C · co-parenting communication app
Add a $24.99 plan with video calls and a set bundle of minutes
Attracted less price-sensitive customers, mostly on iPhone; some couples both pay $24.99
Workedpricingupsell-expansion
What they did
At the end of 2022 added a $24.99/month tier on top of $9.99, adding recorded, transcribed video calling. Because video storage is expensive, each tier includes a bundle of minutes/time sized to cover costs. Higher tiers also get cheaper printed records and lower fees on Accountable Payments (tracked child support/alimony payments).
What happened
Organized customers by willingness to pay; most Apple users are on the higher tier and some co-parent pairs each pay $24.99.
In their words
Sub Club by RevenueCat · From Consultancy to $10M in ARR — Vince Mayfield, TalkingParents“And then when we went to our $24.99 tier, we added in video calling.”
“So we made it so that they got a bundle of minutes and a bundle of time that made really sense, and then we could take it up each level as we went forward.”
“Yeah, and interestingly, what we found out was is that most of our Apple users were on the higher tier, you know, if you think about it.”
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More from this episode
- TalkingParents: Stop relying on ads and courts; charge the parents who use the appBecame the base of a ~$10M ARR subscription business
- TalkingParents: Fly a co-founder around the country to pitch judges and court clerksAbout 60% of users are now ordered onto the app by a court
- TalkingParents: Keep the website free and charge a monthly fee for the mobile appsStarted at $4.99/month; founder now thinks it was priced too low
- TalkingParents: Ask customers what they'd pay for, then build those features into paid plansEvery price rise bundled features customers had asked for
- TalkingParents: Double the price for current subscribers, but add a feature they asked forLost about a quarter of subscribers vs. half expected; some came back
- TalkingParents: Charge each co-parent separately, so one's video calls nudge the other to upgrade
- TalkingParents: Sell free users copies of their records for court, digital or printed and bound
- TalkingParents: Track each visitor from first site visit to paying, using your own dataFounder says it's 'paying dividends' after two years; no numbers
- TalkingParents: Host regular webinars with outside experts who also take over your social and blog
- TalkingParents: Reply to every app review with a real, caring answer, even off-topic rantsFounder says people feel heard and stay subscribed; no numbers
- TalkingParents: Swap a cheap startup transcription vendor for one that scales and bills per callCut transcription cost in half and gained features
- TalkingParents: Run your main calling feature on a small startup vendor instead of TwilioStartup couldn't scale; flagship feature broke and they moved to Twilio
- TalkingParents: Use your consulting firm's income to pay for building your own appTook ~6 years and ~$1M before subscriptions worked; lean times along the way