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    Technology

    Sub Club by RevenueCat

    Interviews with the experts behind the biggest apps in the App Store. Hosts David Barnard and Jacob Eiting dive deep to unlock insights, strategies, and stories that you can use to carve out your slice of the ‘trillion-dollar App Store opportunity’.

    Advertise

    Copyright: © 2023 RevenueCat

    • Apple Podcasts
    • Google Play
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    Latest Episodes:
    From Indie Side Project to $1M in ARR — Curtis Herbert, Slopes Mar 30, 2022
    Show notes

    On the podcast we talk with Curtis about his 9 year journey to reach $1M in ARR, why he shares revenue numbers publicly, and how taking inspiration from web businesses instead of other apps kept him ahead of the curve.

    Our guest today is Curtis Herbert, an independent iOS app developer/designer/wearer of many hats. Curtis is the founder of Slopes, the app for skiing and snowboarding, and he took it from an indie side project to a thriving business.

    In this episode, you’ll learn:

    • Marketing tips for consistent growth
    • How Curtis transitioned Slopes to a subscription model
    • Which tools and strategies had the biggest impact on Slopes’ success
    • The tradeoffs of hiring employees as an indie developer

    Links & Resources

    • Tableau
    • Vero
    • Firebase

    Curtis Herbert’s Links

    • Slopes app
    • Follow Curtis on Twitter
    • Curtis’ website

    Follow us on Twitter:

    • David Barnard
    • Jacob Eiting
    • RevenueCat
    • Sub Club

    Operating a Portfolio of 40 Apps — Michael Ritter, Maple Media Mar 16, 2022
    Show notes

    On the podcast we talk with Michael about operating a portfolio of almost 40 apps, the importance of delivering value to customers, and why you should never use teal on your paywall.

    Joining me today is Michael Ritter, CEO and Founder at Maple Media. Michael and his growing team acquire and operate category-leading consumer apps. Popular Maple Media apps include: Pic Stitch, Weather Hi-Def Radar, Dialog, We Heart It, Player FM, WeekCal, and many more.

    In this episode, you’ll learn:

    • Why customer support is crucial for subscription apps
    • How to price your subscription based on the value it provides
    • Tips for integrating ads into your subscription revenue model
    • How to 10X your money on an app acquisition


    Michael Ritter’s Links

    • Michael’s LinkedIn page
    • Maple Media

    Follow us on Twitter:

    • David Barnard
    • Jacob Eiting
    • RevenueCat
    • Sub Club

    Subscription App Trends and How To Grow in 2022 Mar 02, 2022
    Show notes

    On today’s podcast we’re hosting the Subscription Trends 2022 event. We talk with Thomas and Eric about navigating content fortresses as a developer. They share their thoughts on regulating Apple’s App Store, affiliate marketing, and breakout trends for 2022. We also talk about Web3 and Crypto, and answer questions from folks in the event’s chat room.

    Our guests on the show are Thomas Petit and Eric Seufert. Eric has a depth and breadth of experience with mobile apps and games that few can match. Over the past year, Eric has written extensively about App Tracking Transparency and the future of mobile advertising on his trade blog, Mobile Dev Memo.

    Thomas Petit is a world-renowned mobile growth expert independent consultant. Thomas began his work in the subscription app space, eventually becoming a freelance consultant, and has worked with several large subscription apps.

    In this episode, you’ll learn:

    • How to make a living as a solo app developer
    • Are web apps the future of app development?
    • Are you price-testing your app too soon?
    • How to reduce churn for trial and paid users
    • New regulatory burdens app developers are facing

    Links & Resources

    • The Sub Club Podcast: Growth, Revenue, and Marketing Strategies for Your App — Lisa Kennelly, Fishbrain
    • The Sub Club Podcast website

    Thomas Petit’s Links

    • Follow Thomas on Twitter
    • Thomas’ guest post on the RevenueCat blog: Mobile Subscription Predictions for 2022

    Eric Seufert’s Links

    • Follow Eric on Twitter
    • Eric Seufert’s post: 2022 predictions for mobile marketing
    • Mobile Dev Memo

    Follow us on Twitter:

    • David Barnard
    • Jacob Eiting
    • RevenueCat
    • Sub Club

    Lessons From an Unlimited Marketing Budget — Colette Nataf, MileIQ & Lightning AI Feb 16, 2022
    Show notes

    On the podcast we talk with Colette about selling MileIQ to Microsoft then buying it back, experimenting with an unlimited marketing budget, and unlocking higher retention with a focus on prosumers.

    Our guest today is Colette Nataf, Head of Growth at MileIQ and Co-Founder of Lightning AI. From founding multiple startups to spending more than $100M on marketing in growth roles at several great companies, Colette has spent her career using data science to grow businesses.

    In this episode, you’ll learn:

    • Colette’s take on Apple’s ATT and its effect on marketing
    • Outsourcing to an outside agency vs. growing your team
    • Analyzing lifetime value and customer acquisition cost for long-term subscribers
    • How to balance your business and family life

    Colette Nataf’s Links

    • Colette Nataf’s LinkedIn page
    • MileIQ
    • Lightning AI
    • Colette's maternity leave blog post

    Follow us on Twitter:

    • David Barnard
    • Jacob Eiting
    • RevenueCat
    • Sub Club

    Growth, Revenue, and Marketing Strategies for Your App — Lisa Kennelly, Fishbrain Jan 19, 2022
    Show notes

    On the podcast we talk with Lisa about marketing an app with no revenue, the challenges of adding new revenue streams, and the importance of brand marketing in a post IDFA world.


    Our guest today is Lisa Kennelly, Chief Marketing Officer at Fishbrain, the #1 app for people who love fishing. At Fishbrain, Lisa manages a team of 20 people, and is responsible for everything from brand positioning and product marketing to business development and e-commerce. Lisa also mentors startup founders on marketing and strategy.


    In this episode, you’ll learn:

    • How to make the transition from growth to revenue
    • Finding additional revenue opportunities beyond subscriptions
    • Tips for balancing brand awareness marketing and performance marketing

    Links & Resources

    • VSCO
    • Clue

    Lisa Kennelly’s Links

    • Lisa’s LinkedIn
    • Follow Fishbrain on Twitter
    • Fishbrain’s website
    • Fishbrain Is on Instagram
    • Fishbrain’s Facebook page

    Follow us on Twitter:

    • David Barnard
    • Jacob Eiting
    • RevenueCat
    • Sub Club

    How To Not Screw Up Switching Your App to Subscriptions — Matt Ronge, Astropad Jan 05, 2022
    Show notes

    On the podcast we talk with Matt about how to not screw up switching your app to subscriptions, why offering lifetime subscriptions might not be a great option, and what it’s like when Apple ‘sherlocks’ your product.

    Our guest today is Matt Ronge, co-founder and CEO of Astropad. Having worked at Apple, Garmin, and founded several companies of his own, Matt is an experienced engineer and entrepreneur with a passion for building creative tools.

    In this episode, you’ll learn:

    • How to switch your app from paid to subscriptions
    • Should you offer lifetime subscriptions?
    • Why you should be charging more for your app’s subscription
    • Tips for limiting subscriber churn

    Links & Resources

    • Garmin
    • Giovanni Donelli

    Matt Ronge’s Links

    • Follow Matt Ronge on Twitter
    • Matt's blog
    • Matt’s blog post: How NOT to screw up switching your app to subscriptions
    • Matt’s podcast
    • Astropad
    • Luna Display

    Follow us on Twitter:

    • David Barnard
    • Jacob Eiting
    • RevenueCat
    • Sub Club



    The 4 Foundational Frameworks of Consumer SaaS — Robbie Kellman Baxter, Peninsula Strategies Dec 13, 2021
    Show notes

    On the podcast we talk with Robbie about finding your super users, the real reasons for subscription fatigue, and why pricing isn’t as important as you might think, especially early on.

    Our guest today is Robbie Kellman Baxter, consultant, keynote speaker, and author. She’s advised many of the world’s leading subscription-based companies, including serving on the advisory board of Strava. Her most recent book, “The Forever Transaction” is a deep dive into everything consumer subscription, and a must read for anyone in the space.


    In this episode, you’ll learn:

    • Identifying and attracting lifetime value customers
    • How to get and maintain customer loyalty
    • Three causes of subscription fatigue
    • Why customers cancel their subscriptions

    Links & Resources

    • Strava
    • Intuit
    • Survey Monkey
    • Oracle
    • The Subscription Economy
    • Tien Tzuo: Subscribed
    • Eric Crowley
    • Seth Miller
    • CrossFit
    • Shopify
    • Calm
    • Matthieu Rouif
    • PhotoRoom
    • GoPro
    • Elevate
    • VSCO

    Robbie Kellman Baxter’s Links

    • Robbie Kellman Baxter’s website
    • Follow Robbie on Twitter
    • Robbie’s book: The Forever Transaction
    • Robbie’s book: The Membership Economy
    • Robbie’s LinkedIn

    Follow us on Twitter:

    • David Barnard
    • Jacob Eiting
    • RevenueCat
    • Sub Club

    Episode Transcript

    00:00:00 David:


    Hello, I’m your host, David Barnard, and with me, as always, RevenueCat CEO, Jacob Eiting.


    Our guest today is Robbie Kellman Baxter, consultant, keynote speaker, and author. She’s advised many of the world’s leading subscription-based companies, including serving on the advisory board of Strava. Her most recent book, “The Forever Transaction” is a deep dive into everything consumer subscription, and a must read for anyone in the space.


    On the podcast we talk with Robbie about finding your super users, the real reasons for subscription fatigue, and why pricing isn’t as important as you might think, especially early on.


    Hey Robbie, welcome to the podcast.


    00:00:58 Robbie:


    Thanks for having me. I’m excited to chat with you both.


    00:01:00 David:


    I was introduced to your work by somebody recommending your book, The Membership Economy, and it really struck me. I was so excited that you agreed to be on the podcast, because here’s a book written in 2015, and we’ll talk about your other book that was written more recently, but written in 2015. I was looking through it, scanning the chapters, so I bought the book. I was like, this is everything we’re talking about now, thinking it’s all so novel with subscription apps, but really consumer subscriptions have been around for decades. You’ve been working in this space way longer than any of us.


    So, I thought it would be really fun to have you on the podcast to talk more broadly about these principles of consumer subscriptions that apply equally to D to C subscriptions, as well as the app space that we work in. That’s where I wanted to kick things off.


    So, how did you get your start in consumer subscriptions?


    00:01:57 Robbie:


    A couple of threads came together. I was in product-marketing for what is now called SaaS, for five years, right before I hung out my own shingle and started consulting. So, I had that background as a product manager working with software products that were being sold as subscriptions, and then as an independent consultant.


    My fifth client was Netflix. I fell in love with their business model, and I was wondering why isn’t everybody else falling in love with their business model, too? This is amazing. Recurring revenue, predictable cashflow, the amount of data they were collecting on their customer. The fact that they’re offering was just a much better way of delivering on a promise that many of us wanted delivery for, which is a professionally created catalog of video content delivered in the most efficient way possible. It meant not having to put a raincoat over your jammies to go pick up a movie, with cost certainty and no late fees.


    I was consulting with Netflix. I was already a customer, and a few people started calling and saying, “Hey, we heard you worked with Netflix. We want to be the Netflix of our space.” Whether that was news, or music, or bicycles, or dental pain management products, or clothes, there was a lot of interest in what it was that Netflix was doing.


    So, I started trying to create frameworks, trying to say, what are they doing? Which parts are applicable to other businesses, and which parts are just unique to that group of people solving that particular problem?


    That’s really where I got started, and it turns out to be big enough and deep enough that it’s kept me really busy for, it’s been 20 years, 20 years.


    00:03:55 David:


    Fifth client to, to land as a consultant. That’s a. Really great. And so you were with them before they even introduced the, video on demand on the internet, right. You started with them when it was DVDs in the mail,


    00:04:09 Robbie:


    Yeah.


    00:04:10 David:


    Traditional D to C subscription service.


    00:04:13 Jacob:


    But, but even then was satisfying a lot of those, almost all of those conditions. Right. I didn’t have to go outside just to my mailbox, not too bad price certainty. I didn’t have late fees. and then like, you know, insanely large catalog. Right. you know, it was, it was, it wasn’t. We tend to wait for the technology to get that right.


    And then, then we had VOD being,


    00:04:33...


    How to Thrive Despite Apple’s ATT — Eric Seufert, Mobile Dev Memo Dec 01, 2021
    Show notes

    On the podcast I talk with Eric about the value destruction of App Tracking Transparency, the limitations of SKAdNetwork, and how to thrive as an app developer in this new paradigm.

    My guest today is Eric Seufert. Eric has deep operating experience, having worked in growth and strategy roles at consumer tech companies such as Wooga and Rovio, but he also founded and sold a marketing business intelligence company, Agamemnon, and is an active investor in the mobile gaming and ad tech categories. Eric has a depth and breadth of experience with mobile apps and games that few can match. Over the past year Eric has written extensively about App Tracking Transparency and the future of mobile advertising on his trade blog, Mobile Dev Memo.


    In this episode, you’ll learn:

    • Will Apple’s ATT be a net loss for Apple?
    • Can SKAdNetwork be saved, and does Apple want to save it?
    • Is focusing on organic traffic a flawed strategy?
    • What does the future of app install ads look like?

    Links & Resources

    • Rovio
    • Snapchat
    • Apple’s Private Relay
    • Tim Cook
    • Outbrain
    • Taboola
    • AllTrails
    • SubClub AllTrails podcast episode
    • Stitcher

    Eric Seufert’s Links

    • Follow Eric on Twitter
    • Mobile Dev Memo
    • Heracles
    • Freemium Economics: Leveraging Analytics and User Segmentation to Drive Revenue
    • Eric is on LinkedIn

    Follow us on Twitter:

    • David Barnard
    • Jacob Eiting
    • RevenueCat
    • Sub Club

    Episode Transcript


    00:00:00 David:


    Hello. I’m your host, David Bernard, and for the first time ever, I’m flying solo today. RevenueCat CEO, Jacob Eiting is busy CEO’ing.


    My guest today, is Eric Seufert. Having worked in growth and strategy roles at consumer tech companies such as Wooga and Rovio, Eric has a depth and breadth of experience with mobile apps and games that few can match. He also founded and sold marketing business intelligence company Agamemnon, and is an active investor in the mobile gaming and ad tech categories.


    Over the past year, Eric has written extensively about App Tracking Transparency and the future of mobile advertising on his trade blog, Mobile Dev Memo.


    On the podcast, I talk with Eric about the value destruction of App Tracking Transparency, the limitations of SKAdNetwork, and how to thrive as an app developer in this new paradigm.


    Hey Eric, thanks for being on the podcast.


    00:01:09 Eric:


    Thank you for having me on the podcast.


    00:01:11 David:


    So, we’re going to start off with a bit of a dead horse that’s been beaten over and over again. Apple’s motivation in enacting App Tracking Transparency, but I did want to take kind of a different perspective on it. The most interesting thing to me personally about Apple’s motivation with App Tracking Transparency is what it says about what they are going to do in the future.


    Did they build SKAdNetwork purposely handicapped, or did they not really understand how handicapped it was? Were they really trying to kill Facebook, or was that a kind of a side benefit? I think that their motivations are important, because it forecasts what changes they may or not make moving forward as they start to see the impact.


    So, I think the first thing I wanted to ask you is, how do you see Apple’s reaction and how they perceive ATT to be going, now that we’re seeing snap drop 25% after the quarterly earnings report, and see more of the disruption that you and others were predicting, but maybe Apple didn’t quite see coming? How do you think Apple sees this going currently? And what does that say about the future of privacy on iOS?


    00:02:42 Eric:


    I think Apple’s primary motivation was not to capture mobile advertising market share. I don’t think that was a primary motivation. I think that’s happened, and I think they expected that to happen, but I don’t think that was the primary driver of this decision.


    What I think they wanted to do was, there’s kind of like a big picture idea here, and then an immediate consequence idea. I think what Apple did not like, was that they had kind of lost control over content discovery on the iPhone.


    When the App Store was first launched, that was how you discovered apps. It was through going to the App Store, and some small part search, but then in large part just like the editorial curation that Apple exposes there. That changed over the years, and up until the announcement, or the enactment of of ATT, the way that people discovered apps was through advertising, and primarily Facebook advertising.


    Apple totally lost control. The content that people interacted with on their phones was not the result of any deliberate decision on Apple’s part or some deliberate consideration. It just happened to be whatever could scale ads the best. Whatever companies could scale their ads the most efficiently, that’s what people interacted with. That’s what became dominant on the platform, and Apple really had no say in that.


    Short term, narrow aperture view of this, they just wanted to regain control of that. They wanted to be the kingmakers. They wanted to be the tastemakers; the people that decided—the party that decided—what became popular on the iPhone and how the iPhone was used.


    And I mean, that’s, it’s, if you’ve worked in, in gaming, especially, but if you’ve worked in mobile apps at all and you’ve ever had to go and, you know, go, go through the whole process of pitching your app to Apple, and pleading for featuring You know, that that’s what they want.


    They, they like to having that control because that allowed them to percolate their new iOS features into the app community through almost horsetrading it’s like, you want featuring, We’d be happy to give you featuring, but you’ve got to integrate X, Y, Z thing into your app.


    Once you do that, we’re happy to feature you. that, that was sort of the, that was the, the, the negotiating process. You know, that that process, even that process itself became less important and less prominent in the life of a developer over the last few years, In 2012 to 2015 that’s what you did every time you were launching a new app, or even if you’re doing a major update, you flew, you flew to San Francisco, you went to Cupertino, you went into a, conference room at Apple HQ and you pitch somebody.


    That just stopped being something that people did. Like just people realized that, even if we get featuring, it’s not going to be that meaningful for our business, ...


    Growing an App to 1M Paid Subscribers — Ron Schneidermann, AllTrails Nov 17, 2021
    Show notes

    On the podcast, we talk with Ron about the magic of consumer subscriptions, experimenting with freemium strategies, and how private equity isn’t always as bad as you’ve been led to believe.

    Our guest today is Ron Schneidermann, CEO at AllTrails, the ultimate guide for outdoor adventures. AllTrails was early to the consumer subscription space, launching a $3/month premium tier way back in 2012. Ron joined as CMO and COO in 2015, and then took over as CEO in 2019, helping to grow AllTrails to over 1 million subscribers and tens of millions of active users worldwide.


    In this episode, you’ll learn:

    • How to refine and optimize your freemium strategy
    • Two things you need to keep an eye on as a founder
    • The pros & cons of outside funding vs. organic growth
    • How Ron fast-tracked AllTrails’ profitability


    Links & Resources

    • Accenture
    • Hotwire
    • Yelp
    • Liftopia
    • Alex Honnold
    • Spectrum Equity

    Ron Schneidermann’s Links

    • Ron Schneidermann’s LinkedIn page
    • AllTrails Celebrates 1 Million Paid Subscribers! (January press release)
    • AllTrails’ website
    • AllTrails is hiring
    • Follow AllTrails on Twitter

    Follow us on Twitter:

    • David Barnard
    • Jacob Eiting
    • RevenueCat
    • Sub Club

    Episode Transcript


    00:00:00 David:


    Our guest today is Ron Schneidermann, CEO at AllTrails, the ultimate guide for outdoor adventures, AllTrails was early to the consumer subscription space, launching a $3 per month premium tier, way back in 2012. Ron joined as CMO and COO in 2015, and then took over as CEO in 2019, helping to grow AllTrails to over 1 million subscribers and tens of millions of active users world.


    On the podcast, we talk with Ron about the magic of consumer subscriptions, experimenting with freemium strategies, and how private equity isn’t always as bad as you’ve been led to believe.


    Hey, Ron! Welcome to the podcast.


    00:00:59 Ron:


    Thanks for having me.


    00:01:00 David:


    Yeah. Really looking forward to the chat today. I wanted to kick it off, and most people know what AllTrails is, and it’s a fantastic brand. It kind of tells you what it is right there on the tin. What’s your pitch? We’re in 2021, post pandemic.


    Give us the short version of what AllTrails is. What does it mean?


    00:01:21 Ron:


    Yeah. So AllTrails is a free app and website that helps you find trails all over the globe, so you can spend more time enjoying the outdoors, and spending time in nature.


    00:01:34 David:


    That’s awesome.


    00:01:35 Jacob:


    That’s a very nice mission. That’s way more beautiful than helping developers make more money. Both are important, but I can smell that. It smells, “piney” and I like it.


    00:01:46 David:


    Yeah, it smells like the Colorado forest. I haven’t been hiking forever, and doing all the research to chat with you today was like, oh man, I need to go hiking more.


    00:01:55 Ron:


    I heard there’s a great app for that.


    00:01:57 David:


    I heard that.


    So, I did want to also ask about your journey to AllTrails. You got there fairly early, and then grew in, and you’re now CEO. Tell me, off the bat, what led you to AllTrails way back in 2015 when it was just six people?


    00:02:20 Ron:


    Yeah. To answer that I’m going to go a little bit further back in time. My first job right after college was at Accenture, at a global management consulting firm. It was great. A good jumping off point, and I learned a ton. I didn’t know anything going into that job. You know, you get the rubber stamp and it opens doors.


    By the end of my third year there, I kind of had a realization. Epifany is a little too strong a word, but I just kind kinda realized I can’t take a job just for money again. The amount of time and energy that I was putting into it, and the lack of work-life balance, it really made me rethink who I want to be. Who does working Ron want to be?


    So, I was able to parlay that Accenture job into a biz dev role over at Hotwire, an online travel company. That was really where it opened my eyes. Like, I am so much happier, and I am honestly so much better when I’m working at something that I’m just personally passionate about.


    That guiding principle has really held through throughout my career trajectory. From Hotwire, I want to do my own startup in the ski space. I love to ski. So, I did that for nine years. It was a ton of fun. Then I was over at Yelp, doing growth for a bit. I love finding non-chain restaurants, and supporting mom and pop businesses, and stuff. I live in Yelp, so that was great.


    Then, when the opportunity for AllTrails presented itself, it was just kind of a no-brainer. Of course I’m going to take this.


    I’ll say this to you, one little addendum, one of the things I learned along the way, too. I am not a zero to one guy. That is not when I am at my best. It just causes me stress and anxiety, and just, figuring out how to keep the lights on for another day.


    So, again, knowing kind of that sense of self knowing. Like, alright, I’m best at B to C. I’m at my best when I’m using products I personally want to use and like talking about. I like hypergrowth, and I think that’s probably my sweet spot.


    So, it starts to all align when AllTrials showed up.


    00:04:34 David:


    Yeah. And then how did that go from? You joined the company as COO, right? And then, what was the progression inside the company to eventually taking over as CEO?


    00:04:45 Ron:


    Yeah. So if you want to demo and COO, I dunno why I really wanted to have both, like, I didn’t want to just be CMO in a vacuum, but not have any ownership or agency over kind of team composition and strategy and stuff. So I thought that it was really. Really important. And when you’re a six person company, it’s pretty easy to grab titles.


    It’s not like how to take it from anyone.


    00:05:08 Jacob:


    I was going to ask, like, I mean, it’s, it’s not like you see this a lot where it’s like a six person company and they had like five C-levels and you’re like, okay. Yeah, sure. Like, like my title, for example. But like, I’m kind of curious, like, you know, you like your background, you founded a company, like you were like a real CX whatever.


    Right? Like it’s not like it was fake. So how did, how did that, how did you go as like an executive, like choo...


    Optimizing Your Subscription App for Growth — Eric Crowley, GP Bullhound Oct 27, 2021
    Show notes

    Our guest today is Eric Crowley, a tech investment banker with GP Bullhound. With investments in companies ranging from Spotify to Whoop, and clients such as AllTrails, Pinkbike, and Lingoda, GP Bullhound provides transaction advice and capital to many of the leaders in the Consumer Subscription Software space.

    On the podcast we talk with Eric about his 2021 report on Consumer Subscription Software, the truth about LTV calculations, and the new era of organic user acquisition.

    In this episode, you’ll learn:

    • Was 2020 just a “COVID Bump,” or a shift in consumer behavior?
    • Are the Bumble & Duolingo IPO multiples justified?
    • How savvy developers are adapting to Apple’s App Tracking Transparency
    • The truth about LTV
    • The new era of customer acquisition

    Links & Resources

    • Spotify
    • Whoop
    • AllTrails
    • Pinkbike
    • Lingoda
    • Bumble
    • Duolingo
    • Instacart
    • Match Group
    • Netflix
    • Noom
    • Weight Watchers
    • Tinder
    • The Dyrt
    • Day One Journal
    • Automattic
    • Tech Crunch
    • Scribd
    • Pandora

    Eric Crowley’s Links

    • Follow Eric on Twitter
    • GP Bullhound
    • GP Bullhound insights
    • Eric’s LinkedIn
    • GP Bullhound 2021 CSS survey

    Follow us on Twitter:

    • David Barnard
    • Jacob Eiting
    • RevenueCat
    • Sub Club

    Episode Transcript

    00:00:00 David:


    Hello, I’m your host. David Bernard. And with me, as always, RevenueCat CEO, Jacob Eiting.


    Our guest today is Eric Crowley, a tech investment banker with GP Bullhound. With investments in companies ranging from Spotify to Whoop, and clients such as AllTrails Pinkbike, and Lingoda, GP Bullhound provides transaction advice and capital to many of the leaders in consumer subscription software.


    On the podcast, we talk with Eric about his 2021 report on consumer subscription software, the truth about LTV calculations, and the new era of organic user acquisition.


    Hey, Eric, welcome to the podcast.


    00:00:56 Eric:


    Hey, David, Jacob. Thanks for having me back. It’s always a pleasure.


    00:00:59 David:


    Yeah. Every year you release this report, so we had to get you back. This is the third annual Consumer Subscription Software Report, and I wanted to kick off just asking you a little bit about the motivation, and where your headspace is in thinking about creating this. Who the target is, and what kind of questions you’re asking yourself as you prepare this report.


    00:01:24 Eric:


    Yeah. The report is the GP Bullhound Consumer Subscription Software Report. I call it CSS, which is kind of a playoff SaaS. This is the third year I’ve been writing it, and it started back in 2018. I worked with a company called AllTrails that was starting to monetize really well by selling subscriptions.


    It was like a light bulb went off in my head. I was like, this is a phenomenal way to provide a consistently improving product to consumers, where the margins are pretty good. It’s easy to access a ton of different people globally through the app stores or through the web, and I just got really excited about it.


    I started putting some notes down on my own, and then GP Bullhound really supported me in saying like, “Hey, this is actually a pretty big trend. There’s gonna be some amazing companies built around this space,” and companies like RevenueCat, that are supporting CSS companies, are just as exciting.


    So, we’ve been slowly educating ourselves. The goal behind the report is really just to force me to do some thinking about the space. What it looks like. What it will be. As a banker, you can quickly focus on transaction, transaction, transaction, and not really do any long-term thinking about where the world’s going.


    It’s putting myself in your guys’s shoes. You guys are building RevenueCat not for what the world looks like today, but for what the world looks like in three to five years. I try to take the same approach with CSS, and think about where’s the world going to go. So I talked to a lot of smart people as I put the report together. Entrepreneurs, investors, get their opinions.


    You guys can see their interviews in the report, and then ultimately we publish it. The audience I like to think about is entrepreneurs, people that are thinking about starting a CSS company, or already launched one, and they’re looking to improve their metrics, or think about their target audience as entrepreneur-rich.


    By partnering with them, investing in their businesses, it takes them to the next level. The other way I like to think about it, it’s my own personal scoreboard. I love to flip back two years ago and see, was I right about this company? You’re publishing in public, so people can always come back to you and say, “Man, you were way off.” So, I look forward to that.


    00:03:26 Jacob:


    I remember the F finding the first one, the 2018, I guess, reporter 2019, whenever the first one you put out,


    00:03:33 Eric:


    2019, I think that’s how we met actually.


    00:03:36 Jacob:


    Did you reach out to me or? I think I found it, or I don’t remember what it was, but


    00:03:39 Eric:


    We’ve had a mutual friend, Nico introduced us and said, Hey, you guys should talk about this. and then I think we just went off on a two hour tangent.


    00:03:47 Jacob:


    But yeah, I remember being, it’s still, there’s still not a ton of like really focused research or writing on this space. and I think that, that, you know, this will probably won’t be true for very long, right. As long as it continues to grow, but like going back to like who it’s for. I mean, I imagine it as some, you know, end of the day, if you’re employing.


    Pushing into some kind of lead gen. Right. But it does provide a lot of value for, you know, even if you’re not interested in a transaction or whatever, just. Some like holistic data on a space. Cause like, I, the same, I mean, Eric, you said we’re, we’re thinki...


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