Top Takeaways:

🎯 Your app is a means to an end

Users don’t care about how many features you have — they care about achieving something in their lives. Apps that focus on the user’s goal, rather than their own functionality, become essential. Instead of selling the tool, sell the transformation: what life looks like after the user succeeds.

🧠 Talking to users beats guessing
Surveys are useful, but user interviews and review mining are goldmines for finding the “why” behind behavior. Understanding what users were doing before your app, how they discovered you, and what outcome they hoped for leads to sharper messaging, better onboarding, and stronger products.

💡 Emotions drive retention

Functional goals matter, but emotional and social motivations are often what bring people back. Whether it’s the satisfaction of consistency, the joy of social encouragement, or the comfort of belonging to a community, understanding these deeper drivers can differentiate apps and supercharge retention.

🚧 Activation is about showing early progress

The faster users feel they’re moving toward success, the more likely they are to stick around. That first “win” doesn’t have to be a full result — even completing onboarding, customizing a plan, or getting a small early insight can be enough to hook users into a habit loop.

📈 Monetization follows real value

Users are willing to pay more when they perceive clear, life-improving value. Understanding the different jobs users are hiring your app to do can unlock smarter pricing, better feature tiers, and easier upsells. The closer you align pricing with meaningful outcomes, the more sustainable your growth.

Follow us on X:

• David Barnard - @drbarnard
• Jacob Eiting - @jeiting
• RevenueCat - @RevenueCat
• SubClub - @SubClubHQ

On the podcast, I talk with Dan about estimating the ROI of product changes before building them, calculating your subscription app's growth ceiling, and why you shouldn’t make assumptions about what is and isn’t working in other apps.

Top Takeaways:

💸 ROI-first thinking helps teams prioritize what actually moves the needle
Every project has a cost - whether or not you calculate it. Estimating the ROI of a sprint, even with rough assumptions, can reveal when you’re investing $50K of dev time into a feature with minimal upside. It’s not about forecasting with precision, it’s about using basic math to avoid chasing ideas that won’t pay off.

⚾ Big swings take more than one try
Launching a major feature is rarely a one-and-done success. The biggest wins often come after multiple iterations - refining the UX, testing variations, learning from early data. Too many teams ship once and move on. But if there are signs of life, sticking with it for a few rounds is often where the real gains are made.

⏳ Churn math reveals the ceiling on your growth
If you’re adding 500 users per month and churn is 10%, your max subscriber base is 5,000. It’s simple math, but easy to overlook when topline numbers are growing. Looking at cohorts and long-term retention curves helps you spot when you’re approaching that ceiling - and whether you’re building a durable business or just replacing churned users.

🧵 Small UX improvements can beat big features
Rewriting confusing checkout error messages took just two days and lifted revenue by 1%. Polishing key flows like onboarding or paywall views often delivers a better return than shipping something new. If every user hits a flow, making it smoother can have an outsized impact on conversion and retention.

🚀 The fastest team wins, not the most secretive
Worried someone will copy your idea? Don’t be. The teams that win are the ones who move faster, not the ones who keep ideas hidden. Speed matters more than secrecy. Whether you’re validating a viral feature with TikTok mockups or running a rough A/B test, moving quickly lets you learn, adjust, and stay ahead.

About Dan Layfield:

✍️ Founder of Subscription Index, a blog that breaks down the strategy, math, and real-world lessons behind successful subscription products.

🧠 Dan helps startups grow revenue by optimizing retention, reducing churn, and making smarter product bets rooted in ROI.

💡 “Your company will not be profitable ever if the output of your sprints doesn’t exceed the cost of your sprints.”

👋 LinkedIn

Resources:

The Hidden Math of Churn: Why You Can’t Scale Past $1M — Subscription Index blog post

Follow us on X:

• David Barnard - @drbarnard
• Jacob Eiting - @jeiting
• RevenueCat - @RevenueCat
• SubClub - @SubClubHQ

Episode Highlights:

[1:03] Over/under — The importance of estimating the ROI of your product development efforts in advance.

[6:39] Making a splash: The pros and cons of building features in order to get attention on social media or in the press.

[12:49] Sweat the small stuff: Why fixing “small” issues with your user experience can lead to big payoffs.

[19:41] Hitting a ceiling: How to calculate your company’s maximum subscriber base based on your monthly new users and churn rate.

[24:03] The long game: Accounting for long-term users (“locals”) versus short-term users (“tourists”) in your growth ceiling estimates.

[32:11] Good use: How the degree of product-market fit for your app affects your churn rate.

[37:40] User activation: Mitigating churn by providing a great onboarding experience and giving users early wins.

[39:21] Money talks: Why auditing your pricing tiers and payment processing systems can significantly bolster your bottom line.

On the podcast, I talk with Ajay about the fresh opportunities AI is creating for app developers, how they built a cost-effective TikTok growth engine, and why being forced to monetize helped improve their product decisions.

Top Takeaways:
🤖 New tech, new apps – AI isn’t just making apps smarter. It’s enabling new categories entirely.
Apps built around real-time interaction, emotional context, and personalized content wouldn’t have been possible just a year ago. That means product-market fit can emerge in spaces that didn’t even exist before.

🎨 Design spreads – Great visuals are for distribution, not just decoration.
Memorable characters, animations, or interfaces can make your app instantly recognizable in screenshots, social videos, or App Store listings. Strong creative amplifies word-of-mouth.

💸 Monetization pushes clarity – Charging early forces your product to stand up on its own.
When you’re paying for AI infrastructure, you can’t wait to figure out value. Monetizing quickly reveals which users are getting enough utility to stick around and where the gaps are in your experience.

📈 TikTok still works – For the right product, UGC beats polish.
Test fast, post often, and watch what takes off. Lo-fi creator content can outperform paid campaigns, especially if your app is visual and easy to explain. One viral post can change your growth curve overnight.

🧠 Voice AI is tough to fake – Real conversation needs more than an API call.
Delivering a fast, natural back-and-forth requires layered systems: memory lookup, tone control, real-time rendering, and low-latency streaming. It’s a technical challenge and a competitive moat.

About Ajay Mehta:

👽 Co-Founder of Portola, the creators of Tolan—an AI companion app that offers personalized, engaging, and fun experiences.

📈 Ajay is passionate about AI’s potential to revolutionize consumer apps, focusing on building emotionally resonant, interactive experiences.

💡 “Something that AI really allows you to do is make a consumer experience that just feels like there is totally something on the other side that knows you, understands you.”

👋 LinkedIn and Twitter

Follow us on X:

• David Barnard - @drbarnard
• Jacob Eiting - @jeiting
• RevenueCat - @RevenueCat
• SubClub - @SubClubHQ

Episode Highlights:

[1:10] Origin story: How Ajay and the Portola team developed the AI alien buddy app, Tolan.

[7:38] Cash flow: Why the Tolan team secured venture funding instead of bootstrapping.
[11:36] I, Robot: How AI is changing the app landscape and why AI companion apps are especially promising.
[16:36] Cost/Benefit: The costs associated with running an AI app forced Tolan to monetize early (but that wasn’t a bad thing).
[21:17] Onboarding excellence: How Tolan’s onboarding experience fosters deep personalization and long-term retention.
[28:08] Going viral: Why an effective TikTok marketing strategy can dramatically lower your cost per acquisition.
[39:34] A league of their own: Why competition is relatively low (for now) for AI companion apps.
[47:39] Race to the top: Raising venture capital and using the upfront cash infusion to iterate and beat out the competition (à la Duolingo).
[51:18] Tolan 2 (The Sequel): AI engines have the potential to be spun off into multiple app businesses.