From Free to $80 Subscriptions: Optimizing Revenue Through Continuous Testing

Subscription paywall optimization can make or break a B2C app's revenue, but most startups either over-test with insufficient data or under-test due to resource constraints. Amy Cameron, Head of Marketing at Sylvi AI, shared how her team systematically optimizes their subscription flow using RevenueCat while avoiding common testing pitfalls.

Speaking on the Levels Podcast, Amy revealed specific strategies for paywall testing that helped Sylvi achieve strong conversion rates from their freemium model to an $80 annual subscription.

The Freemium Strategy

Sylvi's approach to monetization balances user acquisition with revenue generation through a thoughtful freemium model:

"Most of the time it is through our subscription paywall. So we work with Revcat on our subscriptions and the way that it works with Sylvi is you can use the app for free if you want to use social chat, news and my words. Those are all completely free features."

This freemium structure provides significant value while creating natural upgrade pressure:

• Social chat enables peer learning and community building
• News reading provides immersion learning opportunities
• My Words offers spaced repetition vocabulary practice

The premium features that trigger the paywall focus on AI-powered interactions:

"The paywall will pop up every now and again. If you want to speak to the AI pen pals, a paywall pops up."

Pricing Structure and User Preferences

Amy's team discovered interesting patterns in user subscription preferences:

"We offer a three month subscription and a yearly subscription. Most of our users choose a yearly subscription. I think our prices have actually just gone up. I was about to tell you how much they were, but I think they've just just gone up for the US. But I think it's $80 for the US, which is a yearly subscription. And then it's $9.99 a month for the three months. So that's like $30 for the three months."

The preference for annual subscriptions suggests several insights:

• Users see long-term value in language learning
• The annual price point feels reasonable for the value provided
• The quarterly option may serve as a "try before you commit" pathway

Testing Infrastructure with RevenueCat

Amy emphasizes the importance of proper testing infrastructure:

"And Revcat's great because you can run A-B tests on that paywall. So you can have two live at one go, split your users 50-50, and have a look at the conversion results."

RevenueCat enables systematic testing of:

• Pricing variations for different subscription lengths
• Copy and messaging on paywall screens
• Visual design elements and call-to-action buttons
• Free trial lengths and promotional offers

The Sample Size Learning Experience

One crucial lesson Amy learned involves the importance of adequate sample sizes for meaningful testing:

"In the early days, we ran loads and loads of tests, but we were so, yeah, we literally had like a hundred people in each test group and we joined this webinar with Revcat and they were like, you need at least like 5,000 people in each group to make a definitive answer."

This experience highlights a common startup mistake: running tests before having sufficient traffic to generate statistically significant results. The learning led to a strategic pause:

"We were like, Right. Okay. Let's give tests a break until we kind of we've got the numbers, but we are we're there now."

The Black Friday Breakthrough

Sylvi's most successful paywall test came from their Black Friday campaign:

"One of our biggest tests was we did a Black Friday offer back in November and we had a one week free trial at the time. We have a two week free trial now, but we offered up a two week free trial for Black Friday and changed our heading Black Friday offer and our conversion rate from download to subscription went through the roof."

This success revealed several important insights:

• Promotional positioning significantly impacts conversion rates
• Extended trial periods can drive higher subscription rates
• Seasonal campaigns create urgency that improves conversion
• Header copy changes alone can dramatically affect performance

Current Testing Focus

Amy's team continues to optimize various paywall elements:

"We've done tests mostly to do with pricing. We've now changed our wording."

Their testing priorities include:

• Pricing structure variations between monthly and annual options
• Copy and messaging optimization for different user segments
• Call-to-action button optimization for improved conversion
• Free trial length testing to find optimal conversion periods

The Offer Strategy

The Black Friday success led to ongoing promotional strategy development:

"So we're working on another offer right now because offering something or taking money off changing that banner to say offer made so much difference."

Key elements of effective offer strategy:

• Clear value proposition in promotional messaging
• Limited-time urgency to drive immediate action
• Trial extension as an alternative to price discounts
• Prominent offer positioning in paywall design

Pricing Psychology Insights

Amy's team discovered important patterns in how pricing presentation affects conversion:

"Even things like having your price is 9.99 a month versus like $30 for three months. was so many things that we need to test."

This insight suggests several testing opportunities:

• Monthly vs. total pricing presentation for multi-month plans
• Percentage savings messaging for annual subscriptions
• Currency formatting and decimal usage in pricing display
• Value proposition messaging alongside pricing

Common Testing Mistakes to Avoid

Amy's experience reveals several pitfalls that startups should avoid:

Insufficient Sample Sizes:

• Running tests with fewer than 5,000 users per variant
• Making decisions based on small data sets
• Not accounting for seasonal variation in results

Over-Testing:

• Testing too many variables simultaneously
• Making changes before tests reach statistical significance
• Testing minor variations that won't meaningfully impact conversion

Under-Testing:

• Assuming first implementation is optimal
• Not testing promotional strategies
• Failing to test different pricing presentations

Key Performance Indicators

Amy's team tracks several crucial metrics for paywall optimization:

Conversion Metrics:

• Download to trial conversion rate
• Trial to paid subscription conversion rate
• Overall download to paid conversion rate

User Experience Metrics:

• Time from download to first paywall encounter
• Paywall abandonment rates
• User feedback on pricing and offers

Revenue Metrics:

• Average revenue per user (ARPU)
• Customer lifetime value (CLV)
• Monthly recurring revenue (MRR) growth

The Future of Paywall Optimization

As Sylvi scales, Amy anticipates more sophisticated testing:

"There are so many things that we need to test. It's just kind of like, where do they fit in priority? And making sure that we like driving enough people to that page to have an accurate test."

Future optimization areas include:

• Personalized pricing based on user behavior and demographics
• Dynamic offers triggered by specific user actions
• Localized pricing for different geographic markets
• Cohort-based testing for different user acquisition channels

Implementation Recommendations

For B2C startups optimizing subscription paywalls:

Immediate Actions:

• Implement proper A/B testing infrastructure
• Establish baseline conversion metrics
• Create promotional offer variations

Short-term Optimization:

• Test free trial length variations
• Experiment with promotional messaging
• Optimize call-to-action copy and design

Long-term Strategy:

• Develop personalized paywall experiences
• Implement sophisticated trigger optimization
• Create dynamic pricing strategies

Key Takeaways

Amy's paywall optimization experience offers valuable lessons for B2C subscription apps:

• Invest in proper testing infrastructure - Tools like RevenueCat enable systematic optimization

• Wait for sufficient sample sizes - 5,000+ users per test group for meaningful results

• Test high-impact elements first - Promotional messaging and trial lengths can dramatically improve conversion

• Don't underestimate copy changes - Simple headline modifications can significantly affect performance

• Use seasonal opportunities - Promotional campaigns create urgency that drives conversion

• Measure what matters - Focus on download-to-subscription conversion rather than just paywall conversion

Paywall optimization is both an art and a science, requiring systematic testing combined with understanding of user psychology and pricing strategy. The key is building proper testing infrastructure and being patient enough to gather meaningful data before making decisions.

Listen to the full conversation to hear more about Amy Cameron's approach to subscription optimization and revenue growth strategies.