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StorySherpa: Subscription Mess

Enough with China (this is not a slogan!)
StorySherpa: Subscription Mess
By Yury Molodtsov • Issue #63 • View online
Enough with China (this is not a slogan!)

This little-noticed change in iOS 13 can put an end to Calm’s 1B valuation and make the App Store better
“80% of the apps we looked at showed a statistically significant decrease in trial conversion rate for users on iOS 13 vs iOS 12.”
David Barnard
On iOS 13 people are now asked “Do you want to keep your subscription for this app?” when deleting an app. I’ve been wondering if that would have much of an impact. Well… now that I work @RevenueCat, I was able to ask one of my colleagues to run the data!
How to Stop the Abuse of Location Data
WTF is Marketplace Liquidity?
Inside Mozilla's 18-month effort to market without Facebook
Mengxi Lu
A lot lessons can be learned from how Prosper and LendingClub started out with disruptive biz models, but were forced to plug into the rest of the legacy financial systems as they scale, and in this process they effectively became lead gen for traditional lenders
Andrew Chen (led growth at Uber) has a couple of insightful tweets on the benchmarks for product-market fit.
Andrew Chen
Magic metrics indicating a startup probably has product/market fit:

1) cohort retention curves that flatten (stickiness)
2) actives/reg > 25% (validates TAM)
3) power user curve showing a smile -- with a big concentration of engaged users (you grow out from this strong core)
Andrew Chen
should also add:

- for subscription, >65% annual retention (paying users are sticking)
- 4x+ annual growth rate across topline metrics (this is more the output metric, but important nevertheless)
- NPS over 60 for monthly actives (not a slice)

bunch of other ones here 👇
We can unbundle G-Suite but it’s going to be quite expensive. Though Google can afford such prices because they fund their business through a different product — their ads engine. Even Office 365 for Business costs more. All these companies have to operate on much higher margins but the good thing for startups is that they validate these price tiers.
Jules Ehrhardt
Gmail --> @Superhuman = $ 30/mo
Slides --> @Pitch = $10/mo*
Sheets --> @Airtable = $12/mo
Docs --> @NotionHQ = $10/mo
Search --> @Getcommande = $10/mo*
Hangouts --> @zoom_us = $15/mo
Forms --> @typeform = $35/mo
* estimated (in beta)
= per user $122/mo vs $5/mo with @gsuite
Casper wants to be “sleep company” but it is selling a commodity good with a curated experience (in terms of the sale itself but also the number of SKUs) and we see more and more competitors in the area. Can this model win?
Benedict Evans
Mattress companies are both absolute GENIUS (‘if you shrink-wrap foam rubber your can do mattresses by mail!’) and a zero margin commodity where ‘a good website’ doesn’t make you a ‘tech company’. Perfect parable of the D2C challenge.
Semil wrote an explosive tweet this week saying you need to raise money all the time to ensure you’re still getting the market. There’s been a huge discussion all other the tech twitter but I wanted to highlight this piece.
Joseph Flaherty
Semil is getting a lot of pushback on this, but he's not wrong. If you're playing the "VC hype train" game, regular uprounds help keep mercenary talent in seats.

But here are 80 billion data points that demonstrate that might be the wrong game to play
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Yury Molodtsov

I'm an Investor at Day One Ventures, a venture capital firm that invests in tech startups and leads their communications.

Here I look at tech news I find important and the future they might lead us.

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