Been testing different monetization approaches for our app and results are all over the place.
Freemium converted poorly, tried tiered subscriptions with mixed success. In-app purchases work but plateau quickly.
What revenue models actually moved the needle for you?
Had similar issues until we switched to a hybrid model that actually makes sense.
We kept freemium but cut the trial from 14 days to 3 days. Sounds backwards but it created urgency. Then added consumable purchases alongside the subscription.
The key was letting users buy specific features without committing to monthly payments. Think of it like buying extra storage or premium templates individually.
Revenue jumped about 40% because we caught users who wanted the app but balked at recurring charges. Some bought consumables multiple times instead of subscribing, which ended up being more profitable.
Also moved our paywall earlier in the flow. Used to show it after users got comfortable, but earlier placement actually converted better.
Annual subscriptions with a discount outperform monthly ones. Offering 40% off yearly plans boosted lifetime value because users stayed longer. Monthly subscriptions often churn after just a few cycles while yearly users tend to stick around.
We also introduced usage-based upsells. Base subscriptions allow for 10 exports monthly, while power users pay extra for unlimited exports. This approach simplifies the model instead of using complex tiers.
The exit intent offers were key as well. When users attempt to cancel, we present a 50% off deal for three months. This strategy saves about 30% of cancellations and gives us time to enhance their experience.
We tried ads between subscription pushes. Low CPM but keeps users engaged while they decide on premium.
Value based pricing worked better than time based trials for us.
Instead of giving 7 days free, we let users complete 3 full projects before hitting the paywall. People got attached to their work and converted around 23% versus 8% with regular trials.
The trick was making sure those 3 projects showed real value but left them wanting more advanced features.