The bottom line
Build tracking, an onboarding paywall, an early review prompt and a hard paywall into the first version of your app. Most buyers decide in their first session, so these small tweaks decide whether the app earns enough to survive.
Key takeaways
- Even the best apps lose many users after the first day, so the first session must do the work. 9:35
- Voodoo's day-one retention of 40 to 60 percent counts as a good rate.
- So the first version should be a little more aggressive, to reach a second stage of roughly $5,000 to $10,000 a month.
- Most buyers pay during onboarding, so the paywall belongs there. 3:01
- 60 to 80 percent of paying users buy before they use the app, and developers see an instant revenue lift once they add it.
- A remote switch lets you turn the paywall off one day and on the next to compare user behavior.
- A hard paywall with no close button lifts revenue when downloads are steady. 6:39
- One app went from $1,000 to $10,000 a month with the same downloads by tuning the paywall, raising the price and removing the X.
- When the hard paywall was lost for a month, sales halved to $5,000. Other apps report three times more sales. It suits apps with about 20 or more downloads a day.
- Asking for a review right after the paywall brings more ratings without hurting the average. 4:00
- About 1 percent of downloads leave a rating, so more downloads and earlier asks mean more reviews.
- A softer option is to ask on the second open, or right after a first action such as one to-do added or one meditation done.
- Tracking each onboarding step shows where users drop, so you know what to fix. 0:47
- Aim for a paywall view rate near 100 percent of installs or first opens. If 90 percent see it but only 3 percent convert, fix the paywall.
- One client cut onboarding from seven screens to four and conversions rose. Another added three benefit screens before the paywall and saw a 234 percent increase.
Anywhere from 60 to 80 percent of all the people who end up buying from you will buy before they even use your app.
Steve P. Young
Chapter summaries
0:00 Track the onboarding funnel
Event tracking replaces guessing with numbers about what new users do.
- Firebase or Mixpanel can track every onboarding step. 0:47
- Without tracking, you are shooting in the dark.
- A daily Mixpanel email reports how many users activated a trial.
- One app averages 15 to 16 trial activations a day.
- B7Dev adds the tracking events for its clients.
2:56 Put the paywall in onboarding
Showing the paywall before first use is a proven habit that developers wish they had started sooner.
- The early paywall feels backwards but works. 3:01
- Steve first heard of it from a friend around 2017 or 2018.
- Skipping it is one of developers' biggest regrets.
- B7Dev built the remote switch for a shared customer long ago.
- After the switch is turned on, every new install sees the paywall in onboarding.
4:00 Ask for reviews early
A review prompt right after the paywall builds ratings, and a huge free user base is the wrong goal for small apps.
- The default App Store prompt belongs right after the paywall. 4:03
- The average rating suffers less than expected.
- It brings more five-star reviews.
- Steve himself asks on the second open.
- Asking right after a first action is another timing.
- Chasing free users first suits big players, not small apps. 4:58
- Large firms can raise money by showing millions of free users.
- Investors usually want to see real numbers.
- Small teams starting out can't copy that plan.
- The tradeoff is free users now against paying users later.
5:41 The hard paywall in practice
A hard paywall is a cheap test that shows early whether people will pay.
- Being aggressive early can beat the usual cautious advice. 5:48
- Stores call early review asks too aggressive. Not asking usually gets zero reviews.
- Common wisdom is not always right. Real cases show small tweaks make a big difference.
- The first goal is to survive.
- A hard paywall means no close button, so a trial must be started to use the app. 6:39
- Little content online is free anymore.
- It is a fit for apps that need early revenue to show investors before the next round.
- The founder first opposed it to avoid scope creep. His co-founder had already built it, and the data won him over.
- Remote config lets the paywall be changed without a new release.
7:45 Survive first, please everyone later
Paying users who stay are worth more than a crowd of free ones.
- Free content makes everyone happy except you. 7:53
- Free riders cost money to serve and pay nothing.
- Some users will delete a paid app. Fewer users who pay and give useful feedback is better.
- Praise with zero money in the bank does not keep the app alive.
- Revenue pays for promotion and future versions.
- Advice from people who have done it beats generic promises. 8:57
- Many vendors offer marketing or development but do not know how it works in real life.
- Many founders stall at stage one because they focus on the wrong things.
- Real results shared by customers are what make advice credible.
In the growth library
Steve P. Young and Chaim Sajnovsky, Steve P. Young is founder of App Masters; Chaim Sajnovsky is at B7Dev, an app development firm. Four features to build into an app before launch: onboarding and paywall tracking, a paywall shown during onboarding, an App Store review prompt after the paywall, and a remotely configurable hard paywall. One client app went from $1,000 to $10,000 a month with the same downloads by optimizing the paywall, raising the price and using a hard paywall.
Lessons that draw on this:
- How to design a paywall that converts
- When to choose a hard paywall over freemium
- What metrics to track and how to define them
- How to decide how long onboarding should be
- How to win in the App Store
- How to run trustworthy experiments
- How to get users to the aha moment fast
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App Masters · The whole library, and ask it anything