Brief Summary
This video is an interview with Steve P Young, founder of App Masters, about monetizing mobile apps through subscriptions. Steve shares his insights on the challenges of growing a subscription app, particularly when starting from zero downloads and subscribers. He emphasizes the importance of ASO (App Store Optimization) and ASA (Apple Search Ads) for initial growth and shares a successful case study where he helped an AI transcription app achieve significant growth using a lifetime offer and app advice campaign. Steve also discusses the importance of optimizing the onboarding and paywall experience, highlighting the effectiveness of a "hard paywall" strategy for certain niche apps. He concludes by emphasizing the importance of optimizing for trial activation in paid user acquisition campaigns and shares his experience with scaling apps using social media ads.
- The hardest part of monetizing a subscription app is getting initial downloads and subscribers.
- ASO and ASA are crucial for early growth, and a lifetime offer campaign can be highly effective.
- Optimizing the onboarding and paywall experience is essential for maximizing revenue.
- A "hard paywall" strategy can be successful for niche apps.
- Optimizing for trial activation is key in paid user acquisition campaigns.
Monetizing Mobile Apps: The Hardest Part & Growth Hacks
The interview begins with Vitali, CEO of Adapt, asking Steve about the biggest challenge in monetizing consumer subscriptions. Steve emphasizes that growth is the most difficult aspect, particularly when starting with no downloads or subscribers. He explains that once an app has downloads, monetization strategies can be implemented more effectively. Steve highlights the importance of focusing on the "bottom of the funnel" and emphasizes that even with a small number of downloads, a well-optimized app can generate revenue.
ASO & ASA: Getting Your First Subscribers
Vitali presents a hypothetical scenario of an Indian developer with a new utility app seeking their first subscriber. Steve recommends starting with ASO and ASA as cost-effective methods for gaining initial downloads. He explains that ASA allows for testing with keywords alone, without requiring the Meta SDK or other tools. Steve emphasizes the importance of tracking trial activation rates and achieving a conversion rate of at least 5% from trial to paid, which is considered industry average.
Growth Hack: Lifetime Offer & App Advice Campaign
Steve shares his favorite growth hack, which involves a lifetime offer and an app advice campaign. He recommends creating a non-consumable in-app purchase with a high price point and offering it for free for a limited time on app advice platforms. This strategy aims to generate downloads, reviews, and early revenue. Steve shares a case study of an AI transcription app that achieved 106,000 downloads, 800 new ratings, and $7,000 in revenue within the first month using this approach.
Scaling with Social Media Ads
Vitali asks about the optimal time to start scaling with social media ads. Steve suggests waiting until an app has generated at least $1,000 in organic revenue. He shares his own experience with scaling an app using Apple Search Ads and highlights the limitations of this channel. Steve believes that social media ads are a more effective way to reach a wider audience once an app has established a solid foundation.
Optimizing the Paywall & Onboarding
Vitali asks about the next steps for maximizing revenue once an app has been optimized for user acquisition. Steve emphasizes the importance of optimizing the onboarding and paywall experience. He highlights the significant impact of these elements on conversion rates and recommends testing different approaches to find the most effective strategy. Steve also discusses the effectiveness of a "hard paywall" strategy, which involves presenting a paid subscription option upfront without offering a free trial.
Common Paywall Mistakes
Vitali asks about common mistakes made when experimenting with paywall designs. Steve identifies the lack of a clear call to action as a frequent error. He emphasizes the importance of guiding users through the checkout process with a prominent button that encourages them to subscribe. Steve also highlights the importance of testing different call-to-action wording and shares a case study where "Continue" performed better on iOS while "Start Free Trial" was more effective on Android.
Pricing & LTV Optimization
Steve discusses the importance of pricing and LTV (Lifetime Value) optimization. He shares a case study where a developer increased their subscription price from $20 to $30 and saw an increase in both revenue and conversion rates. Steve also highlights the importance of considering regional pricing strategies and shares an example where a developer saw a significant increase in LTV by reducing their price by 50% in the Brazilian market.
Fastest Growing App
Vitali asks about Steve's fastest-growing app. Steve shares that he recently helped an app achieve six-figure ARR within the first few months. He attributes this success to a combination of effective ASO, a hard paywall strategy, and a focus on optimizing the onboarding experience. Steve also mentions another app that saw a significant revenue increase after implementing a hard paywall strategy.
