Been running this for 3 months now. Lost about 40% of signups but trial conversions jumped from 12% to 31%.
Still figuring out if the math works long term. Revenue per user is definitely higher but growth feels slower.
Your CAC definitely went up with fewer signups. The real question - can you handle paying more per user when acquisition costs spike?
Hit this same wall with a language learning app. Trial conversions looked great, but we were paying 60% more per signup. Took us 4 months to figure out the payback period was way too long.
Keep an eye on your channels. Some hate friction way more than others. Social ads died but search traffic stayed solid after we made the trial mandatory.
The math usually works out better even with fewer signups because you’re getting people who actually see value in paying.
I did something similar with an app and the quality of users changed completely. Lower volume but much better retention and lifetime value.
Quality beats quantity here. People who enter card details actually stick around instead of signing up and ghosting you. Yeah, you’ll get fewer signups, but your revenue per user group will likely go up. Track that for 6 months. Don’t just look at conversion rates. Watch your trial length too. If users can’t hit your aha moment in 14 days, you’ll see great trial metrics but terrible retention once they start paying.
Three months is still early. Give it another quarter.
Your ad spend probably got more efficient too since trial users convert better than free signups.
Nice jump in conversion rate. We did something similar with a productivity app - dropped the free tier and went from 8% to 24% conversions.
Revenue math works out if your LTV covers the higher CAC from fewer signups. Took us 6 months to see the real impact.
Here’s what we noticed - users who convert from mandatory trials stick around way longer. They’re committed from day one instead of just treating it like another free app.
Check your LTV to CAC ratio first. If these new qualified users are worth 2-3x more over their lifetime, who cares about slower growth? I’ve seen this work when the product’s value hits users fast. But if you need volume to hit your targets, try a middle ground - keep the trial and add a basic free tier to feed your funnel.
That conversion jump from 12% to 31% says it all - you cut out the tire kickers and now you’ve got serious users.
I’d double down on perfecting that trial experience. These users expect more, so your onboarding needs to hit value fast.
Revenue math looks solid, but definitely track how many stick around at 3 and 6 months.
31% conversion is solid. Just watch your support tickets during trials since people expect more help when money’s involved.