Price Power

Jacob Rushfinn
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The Price Power Podcast is for all things growth, retention, and monetization for subscription mobile apps. We talk with amazing leaders in the industry to help share their knowledge with you. Hosted by Jacob Rushfinn, CEO of Botsi.

  1. 19: Lessons From Reviewing 100+ Web Funnels w/ FunnelFox CEO

    2d ago

    19: Lessons From Reviewing 100+ Web Funnels w/ FunnelFox CEO

    Andrey Shakhtin, founder and CEO of FunnelFox, explains why web subscriptions convert and monetize better than the app store, how to stand up a minimum viable web-to-app test, and the payment risks that can freeze your revenue once you scale. What you'll learn: • Why full-funnel conversion (impression to purchase) runs roughly 2x higher on web than in-app, and how the app store install step explains the gap• Why web LTV is about 2x in-app on annual plans and at least 50% higher on monthly• The two structural reasons web LTV is higher: quiz funnels skew toward older, higher-willingness-to-pay buyers, and you control retention end to end• How owning the payment stack lets you run custom cancellation flows and dunning (failed-payment recovery) that Apple and Google never expose• Why deterministic post-ATT attribution makes web the fastest creative-testing loop you have• Why a web funnel is the cheapest way to validate a product, sometimes before the app exists• Why free trials quietly poison your Meta optimization, and how a $1-$5 paid trial fixes the signal• The unit-economics benchmarks that matter: roughly 40-60% day-zero ROAS and a 6-month payback• Why most "amazing-looking" funnels still fail at the paywall and checkout• How to structure a paywall: outcome-based value, visualization, FOMO, price, then social proof• The real difference between refunds, disputes, and chargebacks, and why only chargebacks threaten your account•  How dispute-rate and VAMP (Visa's acquirer monitoring) thresholds can get your PSP to freeze recurring revenue•  Why chargeback-alert services and external billing (payment orchestration) are close to mandatory at scale•  How an easy refund path plus a 50% save offer lowers chargebacks and protects net revenue•  How post-purchase upsells add roughly 20% LTV without triggering disputes Key Takeaways: A web funnel is the cheapest validation you have. Test demand, pricing, even a niche for a few hundred dollars a day before committing engineering. Some teams launch with no product at all, then build the app for the niche that converts. Web's edge is deterministic measurement. With no ATT loss, every purchase ties to an exact creative, so you iterate on message and audience by real numbers instead of inferring from installs. The full funnel converts about 2x on web. You skip the app store install decision, a friction point where lukewarm users drop before they ever see the offer. Most teams miss it because they optimize to installs. Paid trials protect your ad signal. A $1-$5 charge proves the card works and sends Meta a real purchase event, so it optimizes toward payers instead of trial-tourists who never convert. The paywall is where funnels die. After ~100 funnel reviews, it's the most under-built step. "Unlock all features" is not value. Lead with a specific outcome and date, and build it like a landing page. Chargebacks can freeze everything. Refunds are harmless, but cross a provider's dispute or VAMP threshold and it can lock all stored recurring revenue. Make refunds easy and offer a 50% save to keep subscribers. Links & Resources FunnelFox: https://funnelfox.comState of Web-to-App Subscriptions report: https://funnelfox.com/state-of-web2app-2026Andrey Shakhtin on LinkedIn: https://www.linkedin.com/in/andrey-shakhtin/ Timestamps 00:00 Andrey's path: 16 years in mobile, from code to growth to FunnelFox04:30 The minimum viable web-to-app experiment08:00 What scale you need first, and validating a niche with no product10:00 Why web should complement, not replace, your other channels13:30 How web monetization differs from in-app16:00 The report: web LTV and conversion roughly 2x in-app16:40 Why web LTV is higher: older buyers and full retention control19:00 Why the app store install step kills conversion21:00 Organic vs. paid traffic funnels22:30 Free trials vs. paid trials, and the Meta signal25:30 Why web-to-app projects fail28:30 Unit economics: day-zero ROAS and the 6-month payback29:30 Diagnosing a broken funnel against benchmarks36:00 How to structure a paywall that converts41:30 Intro offers and the telecom playbook44:30 Refunds, disputes, chargebacks, and VAMP explained51:00 Defending your payment account: alerts and external billing55:30 The refund hack: offer 50% instead of losing the subscriber57:30 Upsells and lifting LTV ~20%59:30 Biggest pricing win: GLP-1 and $800 order values01:00:30 What FunnelFox does

    1h 4m
  2. 18: Hybrid Monetization: When and where to start w/ Cristian Rotari

    Jun 11

    18: Hybrid Monetization: When and where to start w/ Cristian Rotari

    Cristian Rotari, Monetization Lead at Zing Coach, explains why hybrid monetization is more than bolting ads onto a subscription app, how to layer in-app purchases, affiliates, physical products and partnerships without cannibalizing your core revenue, and when an app is actually ready to start. He walks through the demand curve idea he picked up from Thomas Petit at Lingokids: a single subscription price treats willingness to pay as binary when it really runs across a wide spectrum, from whales who will buy anything to plankton who will never convert. He covers why ads are a volume business that loses money for most small apps, why AI apps have to think about credits and token costs from day zero, and the cannibalization rule he uses at Zing Coach: promote subscriptions to free users, promote upsells only to people who have already paid. What you'll learn: Why hybrid monetization is hard to get real guidance on, even though everyone talks about itHow the demand curve reframes pricing from one number to a spectrum of willingness to payWhy whales and plankton need completely different monetization strategiesWhy freemium, not a hard paywall, is what unlocks both hybrid revenue and organic growthWhen an app is actually ready to add a second monetization model (hint: not day one)Why most apps should start with in-app purchases, not adsHow AI apps break the subscription math when one power user burns thousands in tokens overnightWhy ads only pay off with high daily usage and long sessionsHow to add affiliate revenue with nothing more than an Amazon linkHow Zing Coach structures partnerships like the New York Sports Clubs white-label dealWhy you should sell more to subscribers, not to the free users who already said noHow Zing Coach gets 40% of yearly-plan buyers to take at least one upsellWhy subscription tiers can clash with hybrid and how Spotify avoids the trapCristian's hot take on the trials debateKey Takeaways: Willingness to pay is a spectrum, not a yes/no. A single subscription price leaves money on the table at both ends. Whales would pay more if you let them; plankton will never subscribe but might buy a one-off. Hybrid monetization exists to capture both.Freemium is the foundation. A hard paywall caps your user base, which caps both hybrid revenue and word-of-mouth growth. When Zing Coach eased its paywall and added a trial, it grew the top of the funnel without losing much subscription conversion.Hybrid is not a day-one move. Nail product market fit and one monetization model first, usually subscriptions. Once you understand and can segment your users, add a second layer, and start with in-app purchases rather than ads.Ads are a volume business. They need high daily active users and long sessions to pay off. Most subscription apps, used once or twice a week, do not have the volume, so ads usually lose to in-app purchases for small and mid-size apps.AI apps are the exception to "go slow." Token costs mean a single power user can spend thousands overnight. These apps need credits and usage limits from the start, so it is the status quo, not an add-on.Stop the cannibalization with a simple rule. Promote subscriptions to free users; promote upsells only to people who already subscribed. Someone who paid has shown intent, so that is who you upsell. Free users who declined have low willingness to pay, and stacking offers on them just lowers subscription conversion.Sell to intent. At Zing Coach, about 40% of yearly-plan buyers take at least one upsell, and conversion drops as plan length and intent drop. The wallet is already out, so monetize that moment instead of leaving it unattended.Tiers need a clear value ladder. Spotify segments by use (individual, family, student) rather than piling on pro and premium feature tiers. Add tiers as extra value on top, never by removing things users expect in the base plan.Links & Resources Cristian Rotari on LinkedIn: https://www.linkedin.com/in/cristianrotari/Zing Coach: https://www.zing.coachAlice Muir on AI app pricing (referenced in episode): https://pricepowerpodcast.com/episodes/16-how-to-build-a-subscription-app-in-the-ai-era-w-alice-muirTimestamps 00:00 Intro 01:34 What hybrid monetization actually means (and why it is more than ads) 05:34 The demand curve: whales, plankton, and willingness to pay 08:34 Why freemium unlocks both revenue and organic growth 14:34 When an app is ready to add a second monetization model 17:04 AI apps and the token-cost problem 21:04 Why ads are a volume business most apps lose at 28:04 Affiliate revenue and the Amazon link shortcut 33:04 Physical products and brand extensions 35:34 Partnerships and white-label deals 41:04 Avoiding cannibalization: sell to intent 48:34 Subscription tiers and the value ladder 54:04 Hot take on the trials debate 56:04 Biggest win: the Body Scan upsell

    59 min
  3. Best of Price Power Podcast from the Last 6 Months | Price Power Podcast Ep. 17

    May 28

    Best of Price Power Podcast from the Last 6 Months | Price Power Podcast Ep. 17

    12 guests. 16 clips. One hour of the most tactical advice from the past six months of the Price Power Podcast. This is a best-of episode — no fluff, just the insights that stuck with me the most from conversations with world-class growth leaders. You'll hear frameworks for strategic friction, activation, pricing, signal engineering, Meta and Google campaign architecture, creative strategy, and referral programs. Guests featured: Alice Muir, Daphne Tideman, Ekaterina Gamsriegler, Michal Parizek, Barbara Galiza, Ashley Black, Shumel Lais, Marcus Burke, Lucas Moscon, Gabe Kwakyi, Xavier De Baillenx, and Anthony Scarpaci. 00:00 Introduction01:10 Alice Muir — Strategic Friction & the MyFitnessPal Lesson04:19 Daphne Tideman — Time to First Value vs. Time to Core Value10:39 Ekaterina Gamsriegler — When Lowering Your Price Makes Sense15:45 Michal Parizek — 7-Day Cancellation Rate Predicts Revenue25:46 Barbara Galiza — Send Predicted Value or Get Garbage Installs32:03 Ashley Black — Optimize for Deeper Engagement Events38:42 Shumel Lais — Signal Engineering Explained Simply47:24 Shumel Lais — The 10-Conversions-Per-Day Rule51:09 Marcus Burke — Signal Engineering & the Trial Signal Problem1:01:27 Lucas Moscon — Move Away from ROAS, Focus on Blended ROI1:06:18 Marcus Burke — Blended CPA Is Irrelevant, Break Down by Placement1:11:35 Gabe Kwakyi — Creative Hits Drive Paid Social1:16:10 Xavier Baez — How Many Creatives You Actually Need1:20:23 Anthony Scarpaci — The RIGHT Framework for Referral Programs

    1h 30m
  4. 16: How to Build a Subscription App in the AI Era w/ Alice Muir

    May 6

    16: How to Build a Subscription App in the AI Era w/ Alice Muir

    Alice Muir, independent subscription consultant who's worked with Headspace, VSCO, Adobe, SoundCloud, and MyFitnessPal, explains why "higher engagement equals lower profit" is the new reality for AI apps, how to use strategic friction without choking activation, and why most consumers don't actually care that your app is AI-powered. What you'll learn: How strategic friction worked for MyFitnessPal, and what they got wrong by gating barcode scanning too lateWhy "protect the learning actions, charge for the outcomes" beats free-vs-paid debatesHow to handle the 90% of installs that never subscribe when free users now cost real moneyWhen hybrid monetization actually makes sense and when it just adds complexityWhy weekly subscriptions are a proxy for usage-based pricing on novelty AI appsWhy margin-qualified acquisition matters more than CAC alone for AI productsHow Flibbo used persona tiers on the paywall to get users to self-identify their willingness to payWhy a fitness app got a 6x paywall lift by removing strikethroughs, countdown timers, and stacked offersWhat the Subscription Stack framework needs to add for the AI eraThe back-of-the-napkin math founders should run before shipping any AI featureWhy consumers may actually be turned off by "AI-powered" positioningKey Takeaways: Protect learning actions, charge for outcomes. Users should learn what your product does for free. The thing that completes their job is what they pay for.GPU cost is a CAC line item, not a margin problem. If everyone you acquire gets one free generation, that compute cost belongs in your acquisition budget. Run worst-case-scenario math before you ship.Highest engagement is now lowest profit. Traditional subscription thinking inverts when each interaction has a real cost. The Subscription Stack engagement layer needs a full revision for AI apps.Weekly subscriptions are a usage proxy. AI apps see strong initial conversion and terrible retention because users have high intent for short bursts. Annual plans for a song generator are a fantasy.Self-identification at the paywall beats the questionnaire. Flibbo put basic, pro, and max personas on the paywall. Users picked the one that matched their use case.Simpler paywalls outperform copycat paywalls. Stripping countdown timers, strikethroughs, and stacked plan tiles from a fitness web-to-app funnel produced a 6x lift.Consumers don't care about AI as a feature. They care about the outcome. "AI-powered coach" can read as cheap, not premium. Lead with benefit, not technology.Don't add AI just to add AI. If a feature doesn't measurably improve retention or activation, you're paying GPU costs to compress your margin.Links & Resources Alice Muir on LinkedIn: https://www.linkedin.com/in/alicemuir/Subscription Stack framework: https://phiture.com/resources/subscriptionstack/Andrew Chen on consumer reactions to AI: linkedin.com/posts/andrewchen_when-consumers-dont-care-that-youre-building-activity-7358342997639360512-wqKMThomas Petit RevenueCat article on hybrid monetization: https://www.revenuecat.com/blog/growth/ai-hybrid-monetization/Timestamps 00:00 – Intro 01:25 – Baby raves in Berlin and the new May Day 02:58 – How the playbook changed: from acquisition-first to retention-first 07:25 – Strategic friction and the MyFitnessPal example 10:43 – Hard paywalls vs letting users discover value 11:55 – Protect learning actions, charge for outcomes 17:25 – The 90% problem: monetizing low-intent users 21:36 – When hybrid monetization actually makes sense 26:15 – Apple tax, GPU costs, and the AI app profitability squeeze 28:55 – Why weekly pricing fits novelty AI apps 33:53 – Margin-qualified acquisition for AI apps 39:08 – Flibbo's self-identifying paywall personas 43:55 – The 6x paywall win: stripping out the fluff 47:56 – Revisiting the Subscription Stack for the AI era 51:55 – Switching models to protect margin 53:38 – What founders should get right before adding AI 56:58 – Hot take: consumers don't care about AI

    1h 5m
  5. 15: How to start with Signal Engineering w/ Shumel Lais

    Apr 22

    15: How to start with Signal Engineering w/ Shumel Lais

    Shumel Lais, co-founder of Day30 and previously founded Appsumer (acquired by InMobi), explains why most subscription apps feed ad platforms the wrong goal, how precision and recall reshape signal selection, and what a realistic measurement maturity ladder looks like in 2026. Shumel walks Jacob through the five stages of measurement maturity, from apps that just compare App Store Connect revenue to ad spend, through MMP attribution and cohorted reporting, up to incrementality testing for the largest spenders. He breaks down why signal engineering only makes sense once you have the right foundation in place, shares the 10-conversions-per-campaign-per-day rule of thumb for when to go further down funnel, and unpacks the restaurant booking app mistake that first put him onto the precision/recall framework. What you'll learn: Why optimizing to cost-per-trial leaves money on the table for most subscription appsHow Meta's 7-day visibility window forces the signal engineering problemWhy recall, not precision, is the metric most marketers overlookWhy the restaurant booking app example was Shumel's own mistake, and what it taught himHow Meta's event-day reporting can hide renewals inside new purchase countsWhy server-side events struggle more with matching than client-side eventsHow to decide between revenue-value signals and binary convert/no-convert signalsWhy subscription apps are years behind gaming on analytics maturityThe 10 conversions per campaign per day floor before attempting signal engineeringWhen LTV curves become reliable enough to extend payback from 30 days to 6+ monthsKey Takeaways: Signal engineering is closing the gap between what the platform can see and what you actually care about. Meta sees 7 days. You care about month 3 revenue.Recall is the metric most teams forget to measure. Precision tells you if the users firing your signal convert. Recall tells you what share of your actual converters it captures. A signal with 90% precision and 40% recall tells the algorithm that 60% of your good users are bad.There are five levels of measurement maturity, and most apps skip steps. ASC comparison → platform attribution → MMP → cohorted reporting → incrementality. Signal engineering is a level 3 or 4 exercise. Attempting it earlier wastes the effort.The 10-conversions-per-campaign-per-day rule. Below that, Meta cannot learn from a more selective signal. Above 30 to 40 per day, you are leaving performance on the table by not going further down funnel.Meta reports on event day, not install day. Renewals fire as purchase events, so Meta can claim credit for users who were already paying. Without install-cohorted MMP visibility, you are paying to acquire users you already had.Speed of signal affects matching quality and algorithm learning. Events sent within 24 hours have more matching parameters, and they let Meta decide if a user is good without waiting 7 days for the purchase to come through.The restaurant booking app was Shumel's own mistake. Before Day30, he optimized toward behaviors that correlated with bookings but were not causal. Performance did not move. The fix was cohorts, observation windows, and a binary prediction statement.Measurement problems are not an excuse anymore. In 2026, the tools exist and the playbooks exist. Hiding behind attribution gaps is a choice, as is hiding behind blended CAC when direct CAC is uncomfortable.Links & Resources Day30: https://day30.aiShumel Lais on LinkedIn: https://www.linkedin.com/in/shumellais/Timestamps00:00 Shumel's background and early mobile agency days00:56 The signal engineering framing and how Day30 landed on it03:30 A basic example: trials vs trials plus behavior05:56 Why signal engineering exists (attribution gap, not just subscriptions)08:45 Signal volume as the second dimension after precision09:30 Defining recall and the photo storage app example15:58 When to send revenue values vs binary convert/not-convert16:41 The restaurant booking app mistake and causation vs correlation19:33 Experiments are still the only real proof20:00 Measurement maturity level 1: no MMP, just ASC22:37 Do you actually need an MMP to start?23:39 Level 3: why MMP matters (Meta's event-day reporting trap)25:37 Level 4: cohorted metrics and aligning on day-30 ROAS26:30 Level 5: incrementality and MMM for the largest spenders27:35 The 10 conversions per campaign per day threshold29:30 Why the MMP matters for signal engineering (measurement, not the signal itself)31:03 MMP vs Conversions API for sending signals33:04 SDK vs server-side: matching and speed36:43 Payback periods and when to extend them40:32 Simple inputs for a basic predictive LTV model42:52 If you're running Meta to CPT today, what do you change first44:41 The quantity vs quality of signal tradeoff46:48 Hot takes: no more hiding behind attribution48:02 Favorite pricing and packaging tactics seen recently50:08 Day30's free signal audit offer

    55 min
  6. 14: Fix Activation Before Growth w/ Daphne Tideman

    Apr 8

    14: Fix Activation Before Growth w/ Daphne Tideman

    Daphne Tideman, growth advisor and consultant for subscription apps, explains why most retention problems are actually activation problems, how to distinguish vanity activation metrics from ones that predict real retention, and why the aha moment should start in your ads, not just your product. Daphne walks through her evolution from treating activation as a simple funnel step to seeing it as a layered, behavioral process spanning the first 7 to 30 days. She shares real examples from growth audits where onboarding completion rates looked great but users vanished by day two, and breaks down the "time to first value" vs. "time to core value" framework for thinking about activation in stages. She also makes a case for monthly subscriptions as a faster learning tool for startups, and explains why revenue is a terrible North Star metric. What you'll learn: Why onboarding completion is often a vanity metric that hides activation failuresHow to identify whether your retention problem is actually an activation problemWhy "any action vs. no action" comparisons overstate the value of weak activation metricsHow to build mini aha moments into onboarding before the paywallHow to use the "time to first value" vs. "time to core value" frameworkWhy monthly subscriptions can help startups learn faster about activationHow to test whether an activation metric is predictive or just correlatedWhen user interviews beat quantitative analysis for defining activationWhy extending onboarding can drop completion rates but improve retentionHow to diagnose activation vs. retention vs. acquisition problemsWhy revenue as a North Star metric leads teams to extract value instead of create itKey Takeaways: Onboarding completion is a vanity metric. An app had over 90% onboarding completion on both platforms, but most users were gone by day two. The onboarding was too short and easy to click through. When they extended it and built in value-delivering steps before the paywall, completion dropped but retention improved.Your retention problem is probably an activation problem. For most apps, losing users in the first 30 days isn't a retention failure. It's an activation failure. Daphne argues we even mislabel it: "day two retention" and "day seven retention" describe periods when you're still activating users, not retaining them. True retention problems show up when users were active early but trickle off later.Activation should start in the ad. Showing the job to be done and the transformation in your ad creative builds trust before users even open the app. A coding app's best performing ad showed someone coding in a lift, making viewers think "I could find time for that too."Correlation isn't causation in activation metrics. Any action will always look better than no action. The real work is finding which behaviors, at what volume and timing, predict retention across cohorts and channels.Mini aha moments beat one big moment. Instead of trying to engineer a single big aha moment (which is often technically difficult), build multiple smaller moments of perceived value. These can be as simple as a personalized plan, a visual showing the outcome, or a first small win before the paywall.Monthly plans help you learn faster. For startups without much data, monthly subscriptions force users to make a renewal decision every month, which generates faster signal on who is truly activated vs. who is coasting on inertia.Revenue is a terrible North Star metric. It pushes teams toward extracting value from users rather than creating it. Activation and usage metrics better align the team's incentives with user outcomes.Links & Resources Daphne Tideman's Growth Ways newsletter: https://growthwaves.substack.com/Daphne Tideman on LinkedIn: https://www.linkedin.com/in/daphnetideman/00:00 Intro and Daphne's path from e-commerce to app growth consulting01:20 How activation thinking evolves from 2D to 3D04:20 Common activation mistakes: oversimplifying and picking the wrong metric05:50 Why standard metrics weren't predicting retention07:20 Onboarding completion as a vanity metric: 90% completion, gone by day two10:20 Activation vs. monetization: which to fix first13:20 Building mini aha moments into onboarding and ads17:50 User interviews and the role of emotions in activation20:20 Your retention problem is actually an activation problem23:20 Time to first value vs. time to core value framework27:20 How to test whether an activation metric is real or vanity29:20 Starting with user interviews vs. data when you lack scale31:50 Correlation vs. causation: finding the right activation threshold34:20 Learning from failed experiments36:50 Diagnosing activation vs. retention vs. acquisition problems39:20 Why activation problems are more common than retention problems42:20 Matching subscription models to use cases44:50 Biggest activation mistake apps make right now45:50 Lightning round: pricing wins, hot takes, and best activation results

    50 min
  7. 13: The Four Horsemen of Churn w/ Dan Layfield

    Mar 25

    13: The Four Horsemen of Churn w/ Dan Layfield

    Dan Layfield, author of Subscription Index and former product lead at Codecademy and Uber Eats, explains why churn is the silent ceiling on subscription growth, how to diagnose which type of churn is killing your business, and the pricing trick that can double your LTV overnight. Dan walks through his four horsemen framework: payment failures, activation issues, pricing and plan mix, and voluntary cancellation. He shares the bottom-up optimization approach he uses with every company, starting with Stripe settings that take 10 minutes to fix. What you'll learn: Why your Stripe retry settings are probably wrong and how to fix them in 10 minutesHow to calculate your growth ceiling using churn rate and acquisition numbersWhy payment receipts might be reminding users to cancel every monthHow to price annual plans based on your monthly retention dataHow to build cancellation flows that save 20% of churning usersWhy activation experiments are tricky and often produce dudsWhy quality problems are the easiest growth fixesKey Takeaways: Churn dictates your ceiling. New users divided by churn rate equals your max subscribers. 1,000 new users with 20% churn = 5,000 subscriber ceiling. Lowering churn raises that ceiling proportionally.Start at the bottom of the funnel. Stripe settings, dunning emails, card updaters can be fixed in minutes and win back 5% of churn. Do these before tackling bespoke activation problems.Annual pricing should match monthly LTV plus one or two months. If average retention is five months, price annual at six months. Looks like a steep discount but doubles LTV.Turn off monthly email receipts. Netflix, Spotify, and Amazon don't send them. That monthly reminder is a monthly prompt to cancel.Cancellation flows should solve the underlying problem. Pausing works when the need is temporary. Downgrading works when they're paying for unused features.Links & Resources Subscription Index: https://subscriptionindex.comDan Layfield on LinkedIn: https://www.linkedin.com/in/layfield/Timestamps 00:00 Intro and Dan's path from JP Morgan to Codecademy 04:00 Freemium conversion benchmarks: sub-1% vs. good (3%) vs. great (7%) 06:30 The growth ceiling formula 08:00 The four horsemen of churn 12:00 Bottom-up optimization: start with Stripe settings 13:30 Cancellation flow tactics: pause, discount, upgrade/downgrade 19:30 Payment failure quick wins: smart retries, card updater, dunning emails 22:30 The annual pricing trick that doubled LTV at Codecademy 30:00 Activation and the Reforge framework 37:30 Onboarding should show value, not just explain device setup 42:30 Ethical cancellation flows and click-to-cancel legislation 49:30 Screenshot audit: where to start when you're stuck 52:30 Turn off monthly receipts: the easiest churn win 53:30 Lightning round

    1 hr
  8. 12: Price Testing for Subscription Apps with Michal Parizek

    Mar 12

    12: Price Testing for Subscription Apps with Michal Parizek

    Michal Parizek, pricing and growth lead at Mojo, explains how to predict long-term revenue from short-term price test data, why Apple's automatic regional pricing is wrong for most apps, and how to sequence pricing, packaging, and paywall tests for maximum impact. Michal walks through the 13-month revenue projection model he built at Mojo, which uses seven-day cancellation rates as a proxy for annual renewal rates. He shares how his team raised yearly prices by 50% in the US and Germany with minimal conversion drop, how they tested free trial lengths and found almost no difference between three-day and seven-day trials, and why the ratio between monthly and yearly plan prices matters more than the absolute price point. What you'll learn:- How to use seven-day cancellation rates to project 13-month revenue- Why Apple's exchange-rate-only pricing leaves money on the table- How to sequence price tests: price first, then packaging, then paywall design- Why the monthly-to-yearly price ratio drives plan share more than absolute price- How hiding the monthly plan pushed yearly share from 60% to 80%- Why free trials still matter for new users, despite advice to remove them- How three-day trials performed as well as seven-day trials at Mojo- Why your first price test should have big price gaps, not small ones- How traffic source mix can distort price test results- Why a 100% price increase was a short-term winner but long-term loser Key Takeaways: - Seven-day cancellation rate is a reliable early signal. 20-30% of cancellations happen in the first seven to ten days. Measure that rate per variant, project renewal rates from it, and you can evaluate a price test without waiting months. Mojo validated this against real data and it held. - Apple's regional pricing is just exchange rate math. No purchasing power, no local context. Look at your top five markets individually, compare conversion funnels by country, and cross-reference competitor pricing. - Pricing and packaging beat paywall design in impact. Changing price points, plan structures, and introductory offers had more effect than design or copy. Start with pricing, then plan mix, then layout. - The monthly-to-yearly price ratio drives plan selection. Changing only the monthly price shifted yearly subscriber share significantly. The perceived deal relative to monthly is a strong behavioral lever. - Don't remove free trials for new users without testing. Mojo tried it based on popular advice and saw revenue decline. Test it for your app. - Start price tests with big jumps. Test $40 vs $60 vs $80, not $50 vs $48 vs $52. Find the zone first, refine later. - Revisit cohorts months after shipping. Mojo's 100% price increase looked great short-term but cancellation rates spiked. The 13-month projection caught it. Links & Resources- Michal Parizek's Botsi blog post: https://www.botsi.com/blog-posts/pricing-experiments-the-backbone-of-mojos-monetization-success- Michal Parizek on LinkedIn: https://www.linkedin.com/in/michalparizek/ Timestamps0:00 Intro1:03 Using seven-day cancellation rates to predict 13-month revenue3:25 Building the report template and data pipeline6:13 Validating the renewal rate prediction model10:03 Benchmarks for new apps without renewal history12:09 Why Apple's automatic price tiers are wrong13:33 How to research and set regional prices17:10 Relationship between pricing, packaging, and paywall design21:15 Sequencing: price first, then packaging, then design23:55 Why paywall layout tests that touch plan visibility are most impactful26:41 Free trial strategy and length testing31:03 Paid trial options as an emerging trend33:16 The biggest mistake: not having enough data volume35:56 Raising prices 50% in the US and Germany38:46 Start with big price gaps, refine later40:11 Don't be afraid to test prices

    42 min
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About

The Price Power Podcast is for all things growth, retention, and monetization for subscription mobile apps. We talk with amazing leaders in the industry to help share their knowledge with you. Hosted by Jacob Rushfinn, CEO of Botsi.

Information

  • Creator
    Jacob Rushfinn
  • Years Active
    2025 - 2026
  • Episodes
    19
  • Rating
    Explicit
  • Copyright
    © 2025 Botsi Inc.
  • Show Website
    Price Power

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