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Invest1 publisher3 min readPublished

Month-long trials lift annual renewals more than conversions in RevenueCat's 17,000-app data

RevenueCat's data on more than 17,000 apps shows annual plans converting 44.6% of users on 17-to-32-day trials, against 24% on trials of four days or less. Against the common two-week trial, most of the extra value from a month shows up a year later, at renewal.

The Investor · Invest desk

What happened

  • First renewal on annual plans rose from 18.3% after the shortest trials to 47.5% after the longest, a bigger move than conversion made.
  • Monthly-plan conversion peaked at 46.6% on 10-to-16-day trials and slipped to 43.7% on longer ones, even as first renewal kept climbing.
  • Annual buyers who paid with no trial at all renewed at 26.6%, ahead of buyers who came through trials of nine days or less.
  • Among the 100 apps with the most trial starts in each category, between 81 and 100 run weekly trials of four days or less.
  • The analysis comes from SaaStr, whose fund made the first investment in RevenueCat in 2018.

Compiled by The InvestorSomething wrong?How this is made

Why it matters

  • constraint An operator testing a month-long annual trial against a two-week one will not have a readable result until the first cohort reaches its renewal date.
  • cost Apps holding annual trials at nine days or less, as most category leaders do, give up paid-and-renewed customers a year out in exchange for cash in the first weeks.
  • decision Monthly sellers going past two weeks have to pick between more conversions and better retention, and SaaStr's test is whether churn or conversion leaks more.

Against trials of four days or less, the month-long annual trial converts about 1.86 times as many users [1], the "86% better" in SaaStr's headline [16]. Its first-renewal gain is bigger, at about 2.6 times [2]. RevenueCat folds the two into the share of trial starters who paid and then renewed a year later, and that share went from 3.5% to 18.5% [6], a multiple of about 5.3 [3]. "Same number of trial starts, more than 5x the retained customers," SaaStr wrote [7].

The combined share is not simply conversion times renewal. Multiplying the rates for the shortest and longest annual buckets gives 4.4% and 21.2% [4], above both reported figures, so RevenueCat calculated the combined measure on a different base from the two rates. The ratio between the buckets holds up either way, at 4.8 on the multiplied numbers [5].

The more common starting point is two weeks. Most B2B companies run 14-day trials, according to SaaStr [17], and on annual plans that falls in the 10-to-16-day bucket, where conversion was 43% [4] and first renewal 36.4% [14]. Multiplied, about 15.7% of those trial starters pay and renew, against 21.2% for the month-long bucket, roughly 35% more [8]. Conversion differs by only 1.6 points between the two [8]. For the highest-volume apps, most of which run annual trials of nine days or less [12], the comparison with the five-to-nine-day bucket is 8.3% against 21.2%, about 2.5 times [9].

Monthly plans run the other way past two weeks. Stretching a trial from the 10-to-16-day bucket to 17 to 32 days gives up 2.9 points of conversion for 5.5 points of first renewal [7]. The multiplied products are 33.6% and 33.9% [6]. On RevenueCat's own combined measure the shorter bucket reached 30.6% and the longer one did no better [9].

RevenueCat's explanation for the annual pattern is that a year paid up front is a bigger commitment and harder to undo, so buyers want more time before they sign [18]. Dropping the trial hurts on shorter plans, where no-trial buyers renewed at 35.9% on weekly and 49.5% on monthly, against 65.9% and 77.5% after the better trial lengths [15].

The leaders' short trials buy something. Cash arrives sooner, paid campaigns get faster feedback and free usage costs less, SaaStr wrote, adding that a lot of it is teams copying the category leader [13]. Three readings fit the gap between what the leaders run and what the tables favor: they have not tested longer trials, they have tested and prefer early cash to fund paid acquisition, or trial length is standing in for the type of product. The third would undo the finding. The study sorts trials by length across 17,000-plus apps [1], and an app offering a month-long annual trial may simply sell something that takes a month to show its worth. In my view the annual result is strong enough to test against a two-week default, and the monthly result is too close to justify moving off one. A within-app test that lengthens an annual trial and finds no rise in paid-and-renewed customers would prove that wrong.

RevenueCat powers around 60% of mobile subscription apps, according to SaaStr [2]. SaaStr's headline adds that AI apps hit a wall at 16 days [16]; that figure arrives without the bucket-level conversion and renewal numbers given for annual and monthly plans.

What to watch

  • Whether RevenueCat publishes bucket-level conversion and renewal figures for AI apps to support the 16-day ceiling in SaaStr's headline.
  • Whether the top-100 apps per category lengthen annual trials beyond nine days in RevenueCat's next year of data.
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