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The Tactics Vault
Each week we spend hours researching the best startup growth tactics.
We share the insights in our newsletter with 90,000 founders and marketers. Here's all of them.
How to learn from competitors' hard work
Insight from The Growth Guide.
What works for others is more likely to work for you. So it's time to audit your competitors.
The goal is not to steal directly from your competitor's, it's to learn from their success.
And I don't mean your direct competitors. As I said above, you don't want to risk looking too similar to them. Instead, you want to look at other companies that:
- Target the same audience. Affluent parents. 20-year-old college guys. Hard-core programmers. You have to sell to each of them in completely different ways.
- Monetize in a similar way. Freemium SaaS, a high-ticket services, and physical. You have to sell each of them in completely differently ways.
They do not need to sell the same thing as you. Instead, you want to see how they're capturing and converting the attention of your audience.
Go to Crunchbase and find companies that fit this bill—preferably ones that are larger and older than your startup as they're hopefully more sophisticated.
Next audit their:
- Ads
- Onboarding
- A/B Tests
- Content
- Tech stack
- Their social media
Read our Growth Guide for a step-by-step instruction on how to do the audit.
Why is all this competitive analysis work worth it? Four reasons:
- You learn how your audience's attention is already captured and converted.
- You learn common growth patterns and adopt them as your starting point.
- You find great ideas you’ve overlooked.
- You learn what the norms are, particularly for competitors’ ads and landing pages, so you can break them to stand out from everyone else—to rise above the noise.
That last point is key. I'll repeat it a lot.
Give single opt-in a chance
Insight derived from Drew Price.
If there's a form on the Internet, it will be filled out by a bot.
Guaranteed.
And emailing these can hurt the deliverability of all your emails long term.
Double opt-in helps ensure a human clicked it, and hopefully a human who wants it.
BUT not everyone who actually wants the emails will read the confirmation email and click it. Even in the best of cases we're talking ~70% of people. Even if say 10% are spam, then that means 20% of people who want your emails won't get them.
Here's what we do:
- We use an email validation tool (Kickbox) to check if each email is deliverable, low quality, spam, invalid, and more. We only subscribe if marked "deliverable."
- We have an automated "win back" email sequence to people who haven't opened emails recently. If they don't open/click, they're removed.
- If a handful of emails bounce in a row, removed.
- We periodically go through and remove low-quality looking, or clearly test emails.
- We're also quick to remove if yahoo, hotmail, or aol.
- We make it easy to unsubscribe in every email so if someone got it and they don't want it, they can remove themselves.
- We let people configure which emails they receive from us.
We've run this newsletter for nearly 4 years, and our open rates are consistently 40-45%—which is considered very healthy.
It could be even higher with double opt-in, but we're willing to risk it for the biscuit with the strategy above.
Win by tasting awful and costing more
Insight from No Bullsh*t Strategy by Alex M H Smith and Alchemy by Rory Sutherland.
In the book Alchemy, Rory Sutherland talked about how one might compete against Coke. You might logically try to compete by doing:
- Larger can
- Lower cost
- Better taste
And you’d be laughed out of the room if you suggested:
- Smaller can
- More expensive
- Tastes awful
But that’s exactly what Red Bull did.

They created a new category that was completely unique at the time: energy drink.
Red Bull’s small size, increased cost, and weird taste were critical to its success:
- For you to believe its potency you have to put it in a small can so people think that it’s so potent that it’s unsafe to drink a normal-sized can.
- For you to value it, the "potent ingredients" must make it cost more than a soft drink.
- And for you to believe it has those potent ingredients, it should have a weird medicinal taste (like Buckley’s “It tastes awful, but it works.”)
As Alex M H Smith says in his book, No Bullsh*t Strategy, the best way to compete is with "Contrarian Value"—find what all your competitors are fighting over and purposefully underperform on it so you can overperform in other ways.
Xbox and Playstation are in a brutal battle to be the fastest console.
To compete, Nintendo created the underpowered Switch allowing it to be played both at home and on the go. And it's now the 3rd most sold console in history.
When all the other soft drinks are battling over taste. Red Bull made theirs taste awful.
Ask yourself:
- What are your competitors battling over?
- What do you already suck at?
- What would happen if you sucked at it even more?
Win by tasting awful and costing more
Insight from No Bullsh*t Strategy by Alex M H Smith and Alchemy by Rory Sutherland.
How to write a landing page that converts
Insight from The Growth Guide.
To grow you need a website that converts visitors into purchasers:
Purchase Rate = Desire - (Labor + Confusion)
To increase the purchase rate, increase the visitor's desire to purchase while decreasing their labor (effort) and confusion:
- Increase desire — Entice visitors with how much value you provide. Create intrigue.
- Decrease labor — Reduce the work your visitors have to perform so they don't get tired or annoyed. Be concise and ensure every word and element is of value.
- Decrease confusion — Don't confuse visitors with obscure or verbose messaging. Ensure every sentence can be easily understood. And make it self-evident which action they should take next (e.g. sign up or purchase). And ensure your action elements (e.g. buttons) are unmissable.
This means don't get overly fancy with your pages.
It's not an art piece.
It's not a statement.
It's a tool to convert attention into intention into action.
A lot can be accomplished with this simple, tried-and-true page structure:

By "Features" I don't mean just saying "easy-to-use!"
Instead translate features into the value they'll get from using it. And proactively handle any objections they might have.
For a detailed breakdown of how to create each of these sections, read out Landing Pages section of our comprehensive Growth Guide.
Grow by offering free, related tools
Insight derived from Taplio and Perfect Keto.
Taplio scaled to $1M in ARR in 9 months. They then got acquired by Lemlist.
They did it with a small team and no sales people.
Perfect Keto, a former client of ours, grew to 8-figures in revenue in under 2 years with a team of less than 10 people.
A big driver for both were free tools:
Taplio
Taplio launched 12 free tools that drove a ton of growth.
For example, when carousels were becoming popular on LinkedIn, people were manually repurposing screenshots of tweets. So they created a free Tweet -> Carousel generator.
On that page they pitched to product, then added a watermark that'd only be hidden if you become a paid member of Taplio
Pefect Keto
Perfect Keto sells supplements for people on the keto diet. They started producing a ton of SEO-content about keto diets right as the trend of keto diets was on the up.
One of the biggest drivers of traffic, sales, subscribers, and domain authority (at least at the time) was a free ketogenic diet calculator.
Create your own
To take advantage on this strategy, the sweet spot is:
- It's related to what you sell
- Would-be or current customers would need to do it. Bonus if it's frequently.
- A lot of people are searching for it (do keyword research)
- It's trending upwards (keto diets in 2017 or linkedin carousels in 2022)
Grow by offering free, related tools
Insight derived from Taplio and Perfect Keto.
Death to PMF obsession
Insight from Neal's newsletter and the Growth Program.
Product-Market Fit is a tiny piece of the puzzle.
Yet it's what every startup is chasing.
Of course, creating a product that solves a painful and unsolved problem is critical. But it's way more complicated than that.
We like to use the 5 Fits Framework (adapted from Brian Balfour's Four Fits):

- Product – WHAT you sell. What problem does it solve? How unique is that? And, how well does it solve it?
- Market – WHO you're selling to. Do they have that problem? How painful is it?
- Model – HOW you charge (monthly, one-time, per unit), and how MUCH you charge.
- Channel – WHERE you're marketing and selling it.
- Brand – The perception, identity, and reputation of the company/people selling it.
All five of these need to be in sync for a company to take off. Examples:
- A Rolex-equivalent watch wouldn't work if sold by My Little Pony.
- You couldn't sell a kids toy for a $10,000 monthly subscription.
- You'd go bust if you paid for LinkedIn Ads to sell Fidget Spinners.
A great product that solves your painful problem just doesn't work if:
- It's sold by a brand that you don't trust to make it.
- It costs either way too much or way too little.
- If it's marketed or sold where you aren't spending time.
- And various other permutations of how these fit together.
So as you're building a great product, consider how it all fits together.
Wanna go deeper?
If you wanna go deeper into Five Fits, growth strategy, brand strategy, onboarding, landing pages, as well as setting up marketing channels like ads, cold emails, and SEO—we're offering $300 off our Growth Program in our Black Friday/Cyber Monday promo.
It's for early-stage founders that need to get their startup ready to go grow. We'll teach you the 80/20's of growth for your startup. And show you step-by-step how to do it.
Grab your $300 off →
(Or reply to this newsletter with questions)
Take people on an emotional journey
Insight from Patrick Campbell and The Hero's Journey by Joseph Campbell & Chris Vogler.
A lot of movies, books, and TV shows follow a typical arc: The "Hero's Journey."
Here's what that looks like (using Stars Wars Episode 4 as an example):

This 12 step storytelling framework is overkill in most marketing. But, you can capture its essence with a helpful framework:
"Emotional Resonance" maps.
We buy with emotion and justify with logic. Stories tap into emotions, which tap into wallets.
When you script an ad, webinar, sales pitch, fundraising pitch, marketing email, or social post, map out the emotion you want people to feel as they consume it.
Here are 3 arcs that Patrick shared:



Take people on an emotional journey
Insight from Patrick Campbell and The Hero's Journey by Joseph Campbell & Chris Vogler.
Find and feed the starving crowd
Insight from $100M Offers by Alex Hormozi.
You could have a bad product, mediocre offer and no ability to persuade people and still sell a ton if you have a ton of demand for your product.
(Masks and toilet paper were a great example of this during peak COVID)
You need to find a market that's desperate for a solution. Typically this boil down to seeking improved health, increased wealth, or improved relationships.
Four factors to find a great market with latent demand:
- Pain
- Purchasing power
- Easy to target / easy to find your audience
- It’s growing
Let's dive into each:
Pain
They have to desperately need what you’re offering. It can’t be a nice-to-have.
How much you charge is proportional to the pain someone has and your ability to relieve it.
Share the dream of their life without that pain.
Purchasing Power
If you target students, they cannot pay you $1200 for a course.
Target venture capitalists and they could cough up ten grand if you can make them more.
Easy to Target
But, if you can't get your offer in front of venture capitalists easily, then what's the point?
You need to be able to consistently be able to get in front of a lot of your audience.
Where do they spend time? What mailing lists are they apart of? Social media groups? Communities/forums? What YouTube channels do they watch?
Growing
Find a market that’s growing. You'll grow as it does.
Don’t go into the newspaper or radio business. You'll be fighting a downward trend.
In short, an increasingly painful problem for people with money who are easy to reach.
Grow by leading an army of creators
Insight from Marketing Examples and tabs.
Most social media advice for early-stage startups:
"Focus on one account, maybe the founder. Or just do something else, like ads."
Well, Oliver, the 21-year-old college student and founder of tabs, did the complete opposite—and achieved months with $500,000 worth of sales of "sex chocolate" as a result.
Here's how:
- They have at least 30 creators they work with.
- Each with their own tabs-branded TikTok account. Seriously, 30+ accounts.
- They each post 1-3 videos every day.
- They're all less than 10 seconds.
- Over a third of the accounts have > 10,000,000 total views.
- They feel like customer reviews, not ads.
Each of the 30 creators has their own unique link in the bio so they can track purchases. Assumably, they're all being paid per conversion—so the upfront cost for tabs is minimal.

Added benefit of this strategy:
Now, when tabs run ads on TikTok, Instagram, or Facebook, they have a ton of organic-feeling, proven-to-work ad creatives to use.
PS: They're clients of ours at Ad Labs. We're running their ads now ;0
Recommendations for X's (Twitter's) new algo
Insight from Tanay Jaipuria and NFT_God.
Tanay Jaipuria spent years working on Facebook’s algorithm to help make users’ feeds more relevant and engaging.
So when Twitter/X open-sourced its recommendation algorithm a few months ago, he couldn’t resist the opportunity to take a peek under the hood.
There was another algorithm update since his original article, so we've weaved in other analyses as well.
Here are some tactical recommendations to increase visibility on X:
1. Optimize tweets for maximum engagement.
- Include images and videos (including GIFs) for a 2x boost in ranking. Having 3 or 4 images can boost it even further.
- Post in the same language as your followers to avoid a 90% penalty.
- Tweet about trending topics. These are promoted in the "For You" tab.
- Avoid using multiple hashtags, which can result in a 40% penalty.
- Eliminate misspellings/unknown words to prevent a 95% penalty
- Ask questions. Replies to tweets are one of the biggest boosters.
- Don't link off platform. These get penalized.
- Avoid controversial (blacklisted) topics.
- Don't be offensive.
2. Build quality relationships with followers.
- Reply to people who comment. An author replying is worth 2x someone else replying.
- But, you can be penalized for engaging with low quality commenters—so don't engage with ones in the "show more" or with low quality / offensive profiles.
- Collaborate with users and influencers in the same niche.
- Share targeted, valuable content tailored to your audience’s interests.
- Showcase your personality and brand voice to humanize your presence and make your tweets more relatable.
3. Leverage user factors to boost twitter presence.
- Consider subscribing to Twitter Blue for a 4x boost for people who follow you and a 2x boost for people who don't follow you.
- Maintain a healthy followers-to-following ratio. You should follow no more than 60% of your number of followers.
- Improve your "TweepCred" score, similar to Google’s PageRank, by posting high-quality content, engaging with followers, and maintaining a positive reputation.
- Consider offering a premium subscription. Twitter/X makes money when people subscribe, so they're incentivized to boost you.
Combine the above factors with high-quality content and consistent posting, and you'll give your tweets a better chance of being seen and engaged by your target audience.
For deeper analyses check out Tanay's article, and NFT_GOD's tweets which are more recent (1 and 2).
Use Price Relativity to sell and charge more
Insight from Why We Buy.
Let's build off the last one.
Which of these orange circles is larger?
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Almost everyone says the one on the right—when in fact they're the same size.
Why is simple: Our perceptions are completely relative.
Here are 3 ways to do that:
#1. Change your competitive set
If you don't choose who you're compared to, people will do it for you.
Seedlip naturally would have been compared to a $2 bottle of Schweppe's Tonic Water. So instead, they used premium branding to be compared to the cost of a bottle of gin.
#2 Create a "decoy" product
Make your core product seem cheap by comparing it to a premium option.
The Atlantic famously did this with its pricing. The $100 plan is to make the $59.99 (another classic pricing hack) seem more reasonable.

#3 Highlight the cost of NOT using your product (the alternatives)
Durex doesn't compare itself to Trojan. Instead, it compares it to the cost of a baby:
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Tell the story only your brand can
Insight derived from April Dunford and Bell Curve.
Money has zero intrinsic value.
Money has value because we all believe the same story that it is valuable. In a zombie apocalypse, your $20 bill becomes valuable as a heat source—and your credit card useless.
Van Gogh and Monet paintings are worth millions only because enough people believe the stories that the artist and society created around them. Countless paintings were made with similar aesthetic value, but are forgotten by history.
Your product's value is the same—it depends on the story you tell.
You need to craft compelling narratives that position you as the obvious choice—across the full customer journey.
As April Dunford says, you need to become "Obviously Awesome."
Do that, and instead of selling a $5 soft drink, you're selling a $35 "non-alcoholic spirit."

Here are April's 12 steps to becoming obviously awesome:
- Identify your most eager customers and what they love.
- Assemble diverse folks across your team to help define the story.
- Have an open mind. Try not to succumb to confirmation bias.
- Identify REAL alternatives to using your product (like sleep for Netflix).
- List your product's superior, verifiable features (2x suction, not "user-friendly").
- Determine your features' value to customers.
- Pinpoint customer segments most likely to care.
- Pick a market segment that isn't dominated and dominate it. That could be:
- An entire market (chips)
- A subset (potato-free or baked chips)
- A new market ("dehydrated superfood")
- Connect your product to a current trend (ex: Millennials reducing alcohol consumption)
- Create a document for the team to reference
- Name and description of product
- Market and market segment
- Alternatives to your product
- Product’s unique and superior features
- Tangible value it adds to customers
- The characteristics of ideal customer
- Weave the narrative into your marketing and sales collateral
- Track and adjust if necessary.
Your unique story is hard to get right, but if you do it can do wonders.
#10 is a key step.
You need a system that the whole team can use to tell that story.
We can help you craft that story, and the system to tell it—for hooks, ads, landing pages, emails, and more.
4 ad types to increase click-through rates
Insight from Andrew Chen and Neal / Demand Curve

Now the average is ~0.35%.
A 222x decrease!
Andrew Chen calls this the "Law of Shitty Clickthroughs." Essentially, a new marketing tactic's effectiveness will be short lived. We're drawn to novelty (like the flashing banner ad), but as soon as it becomes common, we tune it out and it stops working.
That's why with any marketing, you need to stand the f*&k out (as Louis Grenier would say).
But this is particularly true with ads where you're blowing money on every impression.
You need to not trigger the "this is an ad" reflex.
Here are some ad types that currently help with that:
1. Customer reactions
Show a user (or actor's) reaction to using the product.
- Dramatic expressions grab attention.
- A lower quality "iPhone" shot or video feels more organic.
- You can showcase your product's "wow" or "magic" moment.
2. Customer testimonials
Social proof is powerful. Share customer text reviews or testimonials. Even better, share a video testimonial. We use Testimontial.to to collect ours—like this one from Alex M H Smith about Unignorable.
3. Unboxing
People love unboxing videos. Oddly, even if it's for a product they know nothing about. There's built in mystery and curiosity, and opening up new products is a pleasurable moment for people so we have positive associations with them.
Cut your video to highlight the most exciting moments in the first few seconds.
4. Product walkthrough
Have a customer, influencer, actor, or just a team member do a selfie-style walkthrough using the product. It feels natural and let's you show off the product.
With all of these, make sure to have a good "hook" to get people invested quickly.
And if you're a startup spending <$50k per month in ads (or looking to get them started), our new service, Ad Labs, we can run the ads for you.
Improve onboarding with the Bowling Alley Framework
Insight from Wes Bush from Product-Led.
40~60% of users who sign up will never actually use your product.
So, nailing the onboarding experience is a key way to increase conversion and retention.
Wes Bush shares what he calls the "Bowling Alley Framework." Here's what that means:

Wes breaks this down in 3 phase:
Phase 1: Build your straight line path
Your user signs up, and hits the product (current state). You want them to get to the "magic moment" where they discover the value your product brings them (desired outcome).
- Step 1: Map out the current path they take from Current State to Desired Outcome.
- Step 2: Label each step as Green (necessary), Yellow (advanced features, can be introduced later), and Red (can be removed completely, like a phone number field).
- Step 3: Remove all Reds. Delay all Yellows. You want nothing but green lights.
Phase 2: Create Product Bumpers
These are elements within the product that push people towards the desired outcome.
- Welcome Message: Welcome them in, restate value props, and motivate them.
- Product Tour: This is a step-by-step tour that hand holds them to the Desired Outcome. Let people opt out if they don't want that.
- Progress Bars: Show their progress to being fully up and running to illustrate they still have stuff to step up. It gamifies onboarding.
- Checklists: Similar to progress bars, show a checklist of the steps remaining.
- Tooltips: Have tooltips pop up to show them where to click next.
- Empty states: If parts of the UI aren't ready to go yet, have a message that explains why it's empty and link to what they need to do it fill it.
Phase 3: Create Conversational Bumpers
Product bumpers only work if they're actually in the product. Often, people will sign up and then bounce.
Conversational bumpers are to bring them back into the product.
This includes a lot of different email types, like onboarding, welcome, case studies, trial expiration, and post-trial surveys.
For a deeper dive into all 3 phases, check out Wes' full article.
From 500 to 122,000 followers in 8 days
Insight from Chewy Thompson.
Chewy Thompson started a daily fitness challenge on his Instagram 8 days ago. Here's his follower progress:
- Day 1: 520 followers
- Day 2: 526 followers
- Day 3: 535 followers
- Day 4: 644 followers
- Day 5: 1938 followers
- Day 6: 16000 followers
- Day 7: 50,000 followers
- Day 8: 88,000 followers
- Current: 128,000 followers
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The premise is:
- For every 1 follower total, he walks 1 inch each day.
- For every 1000 followers total, he does 1 pushup each day.
- At the end of each daily video he says "I'm deleting this channel in (365-X, where X is days into the challenge) days unless I reach 1 million followers"
At the end of the challenge he'll be doing 1,000 push ups and walking 15 miles per day. Which at this rate is the end of this week—he struggled even just doing 1 pushup.
I think this works so well because:
- It's gamified, the more followers the more he has to do.
- People love watching people suffer. Mr Beasts most popular and highest retention videos are of him suffering (in a box underground).
- It's a heroes journey and people get to follow along and see him get fit.
- He has this big goal of working out with John Cena and people want to help him.
- There's stakes. He'll delete his account if he doesn't hit 1M followers.
Of course, there's more to it. Here are the 6 core ingredients of viral content.
Sharpen your copywriting with this cheatsheet
Insight from me (Neal O'Grady).
Copywriting is one of the most important skills.
Whether you're writing:
- Ads,
- Landing pages,
- Fundraising pitch decks,
- Cold emails,
- Social posts,
- Negotiations, or
- Speeches
You need to write clear, compelling copy if you want the person on the other end to take the action you'd like them to.
We created this cheatsheet that covers Hooks, Literary Devices, Tips, Post Types, and Frameworks. High-res version.

A simple content creation formula for viral content
Insight from Diandra Escobar.
There are 3 fundamental elements to a potential viral content idea.
Most people when they create content stop after the first two:
Topic + Format + Creative Concept = Viral Content Idea
Let's dive into each and how they fit together:
#1. Topic
What are you writing or talking about? A person, a concept, a framework, an observation?
And, what emotion or outcome are you trying to achieve?
- Entertain
- Educate
- Inspire
- Surprise
#2. Format
How will you present this topic. This includes whether it's a text-only post, a video, a carousel, a podcast, or an image.
This also includes how you structure it, such as:
- X vs Y (comparing ideas)
- Analytical (deep-dive or teardown of something)
- Actionable (step-by-step breakdown on something)
- Present / Future (how things will be different)
- Interview
- Story
#3. Creative concept
The sky's the limit here. This can take the form of gamification, concept mashups, hair-brained ideas, gamification, or absurdism.
This is the realm of MrBeast. $1 to $1B yachts. Being hunted by an assassin. And putting someone alone in a circle for 100 days.
Most people don't add the creative concept. "5 tips to increase sales" is a topic with a common format. Nothing creative about it; therefore, unlikely to go viral.
An example
Billie Eilish (Topic) + Interview (Format) + Ask questions while she eats insanely spicy wings (Creative Concept) = Billie Eilish Freaks Out While Eating Spicy Wings
And 50,000,000 views. Exponentially higher than other videos on Billie Eilish.

The S.C.A.R.F. research process for better ads/content
Insight from Nigel Thomas.
You can't create the best ideas in a vacuum.
And everything you need to know about your customers and their needs, desires, and fears are on display somewhere online. Here's the S.C.A.R.F. method for finding them:
Social
Browse LinkedIn, Twitter/X, Instagram, TikTok, and YouTube (wherever your audience is)
Search for posts about your niche, topic, competitors, industry, and products.
- Read comments and pull out benefits and objections
- Write down 10 words creators use to describe problems
Competitors
Find 3 competitors and go through their website and social media accounts.
- Write down 5 powerful pieces of copy they use
- Scan product pages for unique selling ppints
- Use SEMrush to see their Google Ads
- Find their ads and click through the funnels
Affiliates
Affiliates are incentivized to learn how to pitch products.
Use Goole and SEO tools like SEMrush and ahrefs to find affiliates in your niche (or that mention your product or a competitor's product)
- If they talk about your product, note how they pitch it or how they review it.
- If not, see how they talk about competitors.
Reviews
If you have reviews for your product, export them into two lists:
- List 1: 1-3 stars, find objections
- List 2: 4-5 stars, find benefits
Visit competitor's and do the same.
Forums
Find relevant subreddits and forums (find them with google).
- Track most popular topics. Note objections, pain points, benefits.
- Focus on their desired lifestyle/outcome, the stories they tell, and the words they use to describe things.
A better way to price annual plans (and reverse engineer retention rates)
Insight from Daniel Layfield (Codecademy and Uber)
Monthly: $49
Annual: $490
^ every startup product ever.
It's simple, clean, and they save 17% by doing annual. And you guarantee 10 months of revenue and hopefully reduce churn. Win-win.
But, is it the right choice?
Probably not.
You don't see this trends as often with established companies.
Daniel says the trick is to price your annual plan at slightly more than your average LTV for monthly users.
So, if your average monthly user stays around for 4 months ($49 each), price your annual plan at 5 months ($245).
Daniel did this at Codecademy, and claims it was their best tactic at increasing LTV and reducing churn.
Takeaway: Consider running this pricing experiment if your average monthly retention is less than 12 months.
Another, counter-intuitive benefit
More mature companies have figured this out. Meaning you can estimate the average retention for mature software products. Examples that Daniel shares:
- Netflix: Only offers monthly plans. Their average user likely stays around for over 12 months (guilty). Spotify is the same.
- Headspace: $12.99/mo vs $69.99/yr. Ratio of 5.39, so their monthly users likely stay around for ~4 months.
- Calm: $14.99/mo vs $69.99/yr. Ratio of 4.67, so their monthly users likely stay around for ~3-4 months.
Build this into your competitor analysis process!
And check out Daniel's full write up here.
A better way to price annual plans (and reverse engineer retention rates)
Insight from Daniel Layfield (Codecademy and Uber)
Don't be logical, be psycho-logical
Insight from Rory Sutherland and Bell Curve.
We decide with emotions.
Logic is often what we use to convince ourselves that our emotional decision is the right one, or to justify a past emotional decision.
Rory Sutherland shares a prime example in his book Alchemy. One of his clients was sending out physical letters asking for donations. Like all good marketers they A/B tested several different variations to see which brought in the most money:
- Control. The regular letter asking for donations.
- Donation matching. They highlighted that the government would match their donations, effectively doubling the impact of their donation.
- Heavier paper. They put the letters on higher quality, thicker paper.
- Hand delivered. They highlighted that a volunteer hand-delivered to their door.
- Horizontal opening. They used a special envelope that opened on the end, not on the typical long side of the envelope.
Variations 3 through 5 seem rather weird and extraneous to the whole point. And logically, the variation that highlighted the donation matching should do the best, right? You tell people that a $10 donation is actually $20, isn't that more motivating?
Wrong.
Variation #2 (donation matching) did worse than control. Variations 3 through 5 all beat the control, and the best was variation #5 (horizontal opening).
But if you asked those people why they donated, they'd probably say "it's a worthy cause, blah blah blah" and not "the weird envelope got my attention."
This is what Rory calls psycho-logical—logical in the context of human psychology.
An ad example
We used this principle 6 years ago for a client of ours that sold powerful computers for machine learning/AI purposes. We made an ad variation that made no sense:

You wouldn't assume sloppily adding dog ears and nose onto a $10,000+ work computer would make it more likely that someone would purchase it.
Yet, this became one of their best-performing ads at the time.
It stopped the scroll and made them look a little closer. And no one else had done it.
So be a little crazy with your ideas.
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