Switching to a subscription model requires generosity to existing customers and a focus on developing new features to convince users to subscribe.
Offering lifetime subscriptions can present challenges with high churn rates and the need for ongoing revenue for small companies.
Adaptability and differentiation are crucial for small companies facing tough competition, as demonstrated by Astropad's success by targeting the Windows market.
Deep dives
Matt Ronge's Journey from Apple to Astropad
Matt Ronge, co-founder and CEO of Astropad, shares his experience of transitioning from working at Apple and Garmin to launching Astropad, a creative tool that turns iPads into high-end drawing tablets. He talks about the founding story of Astropad, the challenges they faced, and the decision to switch their business model from upfront payments to subscriptions. Matt also discusses the impact of Apple's Sidecar on their business and how they pivoted to focus on Windows. Despite the difficulties they faced, he shares that it is possible for small companies to survive and thrive even when facing tough competition.
Switching to Subscriptions: Lessons Learned
Matt Ronge provides insights on the process of transitioning Astropad to a subscription model. He emphasizes the importance of being generous with existing customers when making the switch and focusing on developing new features that provide additional value to convince users to subscribe. Matt also discusses the potential benefits and drawbacks of offering lifetime subscriptions, highlighting the challenges of high churn rates in consumer-focused subscriptions and the need for ongoing cash flow and revenue for small bootstrapped companies.
The Impact of Apple's Sidecar and Pivoting to Windows
Matt Ronge discusses the impact of Apple's Sidecar on Astropad's business and revenue. He shares the initial challenges they faced and how they pivoted to focus on developing Luna Display for Windows, which allowed users to turn their iPad or Mac into a second display. Matt highlights the importance of differentiating their product by offering a higher level of quality and features. Despite the initial difficulties, he shares that they were able to recover and see improved success by targeting the Windows market.
Lessons from Competing with Apple
Matt Ronge reflects on the experience of competing with Apple as a small software and hardware company. He emphasizes the importance of resilience and being adaptable in the face of tough competition. Matt shares that while it was a challenging journey, they were able to thrive by finding a unique value proposition, delivering high-quality products, and focusing on customer needs. He encourages other small developers to not be discouraged by competition and to explore new markets and opportunities for growth.
Key Takeaways and Final Thoughts
In conclusion, Matt Ronge's story highlights the resilience, adaptability, and determination required to succeed as a small software and hardware company in a competitive market. He underscores the importance of listening to customer needs, offering value-added features, and finding opportunities to differentiate from larger competitors. Matt's journey demonstrates that despite setbacks and challenges, it is possible to pivot and thrive by leveraging unique strengths, targeting new markets, and constantly evolving to meet changing customer demands.
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
