# Yearly price raised 50%: minimal drop in free-to-paid

- Outcome: Won
- Page type: Paywall (App)
- Elements: Pricing
- Date shared: 2023
- Test run by: [Mojo](https://liftarchive.com/practitioners/mojo/)
- Commentary by: LiftArchive (our analysis, not theirs)
- Original source: https://www.revenuecat.com/blog/growth/mojo-60-percent-arpu-growth-five-months/
- Page: https://liftarchive.com/test/mojo-50pct-higher-yearly-price/

Mojo raised the yearly price by 50% for new users in markets like the USA and Germany, and free-to-paid conversion dropped only minimally. Mojo, a video editing app, ran these price tests, and Michal Parizek wrote them up on the RevenueCat blog. Exact figures were not shared.

## Result

**Minimal drop in free-to-paid conversion**

- Free-to-paid conversion: only a minimal drop, per Mojo. No exact figure was shared.
- Revenue impact: not quantified, though a 50% higher price with similar conversion points to more revenue per user.
- In other markets such as Brazil, Mojo tested lower prices instead, and those did better in both the short and long run.

## Control

New users in markets such as the USA and Germany saw Mojo's existing yearly price.

## Variant

The yearly price for new users in those markets was raised by 50%.

## Why it likely won (our reading)

- The old yearly price was likely below what users in these markets were willing to pay.
- Mojo set test prices by hand for each market instead of relying on Apple's automatic price conversion.
- Mojo judged price tests on both 7-day new revenue and a 13-month revenue forecast, so a small conversion drop could still be a clear win.

## Caveats

No exact conversion or revenue figures, sample size or duration were shared. The rise applied to some markets only; Mojo's overall ARPU growth came from many tests, not this one alone.

## How to run this test

- Hypothesis: If we raise the yearly price for new users in a high-income market, then revenue per new user will rise because conversion will fall less than the price goes up.
- Primary metric: New revenue per user over the conversion window (for example 7 days)
- Guardrail: Free-to-paid conversion
- Guardrail: Share of yearly vs monthly plans
- Guardrail: Cancellation rate in the first 7 days
- Who should test it: Apps with steady conversion that haven't revisited prices in a while, in markets with strong buying power. In price-sensitive markets, test a lower price too, as Mojo did in Brazil.

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Credit: Mojo ran this test and owns the result. Summary and commentary by LiftArchive (https://liftarchive.com/test/mojo-50pct-higher-yearly-price/).
Usage: Free to use, quote and build on, with credit and a link: name the practitioner or organization that ran the test and link to its LiftArchive page. The results belong to the practitioners who ran and shared them; the summaries and commentary are LiftArchive's.