In this episode of SubHub, I’m joined by Daniel Layfield, founder of The Subscription Index, to talk about one of the most important transitions in any app’s journey: going from having something people love to building a business that makes money.

We dig into how early-stage teams can confidently measure product-market fit, avoid the most common monetization traps, and align acquisition, usage, and monetization into one cohesive engine for growth. Whether you’re pre-revenue or gearing up for scale, this episode is packed with real-world strategies for building a sustainable, high-retention app business.

Key Takeaways

• Don’t rush into monetization optimization before achieving product-market fit. Focus on delivering value first, then work on capturing it.
• Use the Sean Ellis Survey or retention curve analysis to determine whether you’ve hit baseline PMF.
• Freemium products only work at scale. If you’re relying on paid ads for growth, you’ll need high conversion rates and LTV to match.
• Early complexity kills momentum. Avoid unnecessary pricing tiers, referral systems, and features that slow down your team.
• Focus on two to three meaningful metrics like trial starts, activation, and paid conversions. Be sure to iterate intentionally.
• Shipping does not equal progress. Real progress is improving the product in a way that moves the needle on retention and revenue.
• Churn matters. Use proven tactics like ML-based payment retries, cancellation win-backs, and tier switching to keep users around.
• Your best users hold the key. Collect persona data early and use it to personalize pricing, onboarding, and messaging.

Resources & Links

📊 Explore insights from The Subscription Index

• 📈 Optimize your monetization with Adapty