From Product-Market Fit to Profit with Daniel Layfield from the Subscription Index

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