TalkingParents · B2C · co-parenting communication app
Swap a cheap startup transcription vendor for one that scales and bills per call
Cut transcription cost in half and gained features
Workedteam-process
What they did
The first audio transcription vendor, a startup chosen for being cheap and easy to integrate, charged per channel transcribed and had transcription problems and disconnections at scale. Switched to AssemblyAI, which charges for dual-channel audio and also supports multiple languages. Lesson: check unit economics and effect on cost of goods before choosing a vendor, and design integrations so vendors can be swapped.
What happened
Transcription cost cut in half with more features; required re-engineering.
In their words
Sub Club by RevenueCat · From Consultancy to $10M in ARR — Vince Mayfield, TalkingParents“But we had a previous one that was a startup company, and we didn't pay particular attention to the unit economics there and we didn't pay particular attention to how it might scale.”
“So we actually made this transition to Assembly. We cut our cost in half, and we got more features and functionality out of it, because instead of they would charge us for each channel that we were transcribing, whereas under the new system, it charged us under dual channel, and allowed us to go through.”
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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: Add a $24.99 plan with video calls and a set bundle of minutesAttracted less price-sensitive customers, mostly on iPhone; some couples both pay $24.99
- 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: 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