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Choosing the Right Paywall Strategy

Feb 2, 2025

Lecture on App Strategy: Hard Paywalls vs. Timed Paywalls

Key Points:

  • Hard Paywalls

    • Initial implementation of a hard paywall led to an immediate increase in sales from existing users.
    • However, a significant downside was observed: a massive drop in user base, with thousands leaving the app overnight.
    • The remaining users expressed a lot of frustration and anger due to the abrupt paywall.
  • Lesson Learned

    • The experience served as a costly ($33,000) but critical lesson in app strategy – highlighting the potential drawbacks of hard paywalls.
  • Solution: Timed Paywalls

    • Transitioning from a hard paywall to a timed paywall resulted in a positive shift.
    • Users responded much more favorably to timed paywalls as it likely offered them more flexibility and understanding before being required to pay.
    • This change not only alleviated user frustration but also led to an increase in revenue.

Conclusion:

  • The transformation from a hard paywall to a timed paywall can significantly enhance user experience and boost app revenue.
  • It’s important to consider user satisfaction and adaptability when implementing paywalls in apps.

Further Learning

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