Founders should accept lower LTV to maximize total user volume
Blake Anderson · 24 year old making $1m/month from AI shares 3 startup ideas · Nov 6, 2024 · at 24:55
Blake Anderson explains his counter-consensus pricing and paywall optimization philosophy on The Startup Ideas Podcast.
0:00 / 0:22exact quote · 22.4s
▶ Watch the full episode on YouTube → 720p mp4 · rendered on demand · StarZero watermark
“I believe that you should optimize for like number of users raised to the N where N is greater than one multiplied by profit per user. I will take at least at a just pure conversion basis. I will accept a lower LTV on a per download basis in exchange for more people being able to use the platform.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Blake Anderson
MyFitnessPal engineers lack equity incentives and care less about the product
“The engineers at my fitness pal, like my fitness pal to begin with has been like traded back and forth, sold so many times that the people that are doing the groundwork don't like, probably don't have that much equity, you know? And so the engineers don't care…”
An all-in-one career AI tool could easily charge $50 monthly
“Now I think that a career AI, you charge 50 bucks a month for an all-in-one tool to me feels pretty obvious.”
Using influencer databases and marketing agencies is an ineffective strategy
“Number one, I don't use influencer marketplaces or databases. Number two, I think that there's a lot of messaging on the internet about various tools. So like marketplace and databases or agencies to find influencers for you. That's just like outright wrong. W…”
Appending 'AI' to product names works best in stagnant industries
“Appending AI is valuable when you are creating innovation within a relatively stagnant industry, such as Cal AI.”
Anderson recommends Superwall over RevenueCat for mobile app paywalls
“I think that pretty much everybody should be using Superwall. I don't use revenue cap. I only use Superwall.”
Placing paywalls at the end of onboarding outperforms all other strategies
“The most standard practice in the industry right now is to take people through some onboarding flow and then hit them with a paywall at the end. It's just like, you make so much more doing that than pretty much any other paywall strategy.”