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Section 14 · App Monetization
App Monetization: Subscriptions, Free Trials, And Smart Feature Gating
Most paid apps fail. The ones that win use trial + subscription + smart gating.
Revenue
Retention
Pricing
Why it works
App stores are conversion machines for subscriptions — when set up right. Wrong model = 1% paid users and high churn.
Connects to
Revenue
Retention
Pricing
When to use it
Apps, AI tools, web SaaS, productivity tools, learning apps.
When NOT to use it
Avoid one-time paid apps in 2025 — discovery and retention both suffer.
How to use it
- Default to free trial (7-14 days) into monthly + annual subscription.
- Gate ONE high-value feature behind paid — not everything.
- Show the upgrade prompt at the moment of value, not on first open.
- Annual plans at 30-40% discount — they drop churn dramatically.
- Use referral credits to lower CAC (Dropbox model).
Examples
Calm / Headspace
7-day trial → annual subscription. ~80% of paid users on annual.
Bear / Things
Premium subscription unlocks one killer feature (sync, integrations).