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Mobile apps›Monetization

Paid intro offers ($1.99 first month that renews yearly)

Next to the free-trial plan, offer a cheap paid first period (e.g. $1.99 for month one, then $59.99/year) — a tripwire that lifted conversion 19% → 25% and proceeds +21% in one test.

Updated 2026-10-23·3 sources·monetizationpricingintro-offerfree-trialltv

Paid intro offers

TL;DR

  • Two yearly options side by side: “7 days free, then $59.99/yr” and “$1.99 for the first month, then $59.99/yr” (Rest of Me/”Resemmee” pattern).
  • ~75–80% pick the free trial; 20–30% pick $1.99 — but those convert/renew at 60–70% vs 30–40% for free trials.
  • Use it to replace a plain monthly plan (monthly LTV ≈ $3–3.5).
  • Community test (Sebastian): conversion 19% → 25%, proceeds +21% over 1.5 months.
  • Best when trial activation is already >10%.

Details

Mechanics. Both options are the same yearly subscription; the paid one uses an introductory pay-up-front price for the first month. Steve likens it to an online-marketing tripwire: a tiny first purchase, then upsell.12 Resemmee was A/B testing a straight free-week paywall against the $1.99 version when Steve captured it.3

Who picks what. Roughly 75–80% choose the 7-day free trial and 20–30% the $1.99 month, but those paying up front tend to stay and renew into yearly.4 Steve’s numbers: free-trial trial-to-paid ≈ 30–40%; $1.99 intro “paid-to-paid” ≈ 60–70%.5 They’ve shown willingness to pay, and upselling an existing customer is easier than finding a new one.6

Why replace monthly. For most apps monthly LTV is ~$3–3.5; an intro offer that rolls into yearly captures yearly LTV from people who wanted a low commitment.6 Why $1.99: premium enough to feel real, low enough to try.6

Results. Sebastian (App Founders community) replaced his monthly plan with a $1.99 intro that renews yearly; over ~1.5 months conversion went from 19% to 25% and proceeds rose 21%.728 Steve’s own app test was early and the numbers were initially weak, though renewals were starting to come through.4

When. If trial activation is already above ~10%, add paid intro offers.5

Disagreements / caveats

  • Steve calls this “the future of monetization” — an opinion; his own test was inconclusive at recording.
  • Make the renewal price unmistakable to avoid refund requests and review complaints.

See also

Footnotes

  1. The Paywall Strategy That Increased Conversions by 56% @ 06:12 — Steve P. Young ↩

  2. 56% More Trials With This One Change @ 02:54 — Steve P. Young ↩ ↩2

  3. App Monetization Tactics No One Is Talking About @ 07:03 — Steve P. Young ↩

  4. The Paywall Strategy That Increased Conversions by 56% @ 06:12 — Steve P. Young ↩ ↩2

  5. 56% More Trials With This One Change @ 08:02 — Steve P. Young ↩ ↩2

  6. App Monetization Tactics No One Is Talking About @ 05:45 — Steve P. Young ↩ ↩2 ↩3

  7. The Paywall Strategy That Increased Conversions by 56% @ 07:17 — Steve P. Young ↩

  8. App Monetization Tactics No One Is Talking About @ 07:03 — Steve P. Young ↩